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To: The Duke of URL© who wrote (168185)	7/14/2002 3:23:48 PM
From: Dave	Read Replies (1) \| Respond to of 186894

duke, Perhaps the "cost" of granting stock options should be amortized over its life wherein if a stock option is exercised the remainder of the expense is recognized in the period which it is exercised. Conversely, if a stock option expires worthless, this offsets the expense. BWDIK The argument should not be about whether stock options should be expensed, or whatnot. The true argument should be whether companies can issue "pro forma" numbers. That, in my opinion, is the problem.

To: The Duke of URL© who wrote (168185)	7/14/2002 7:21:11 PM
From: John F. Dowd	Respond to of 186894

Duke: I am glad you have this part right. The stock options are a matter to be dealt with in the capital accounts not the P and E. I really wonder what school of accounting Buffett and Greenspan flunked out of. It should also be pointed out that these things are only dilutive when the strike price is exercised when the stock price is trading above that strike price. On the other hand it does bring new money into the company at the strike price albeit it is discounted. This is all such BS except for where they keep readjusting the options lower and lower no matter how shitty the top management performs. That abuse is easily brought to a halt by the shareholders and directors if those folks can find their butt with both hands. JFD