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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Harold Engstrom who wrote (6844)	7/31/2002 11:09:29 AM
From: dalroi	Respond to of 52153

Harold indeed W.E.B doesnt like those options either it seems to detach corporate leader from the reality of stock ownership cheers Stefaan

To: Harold Engstrom who wrote (6844)	7/31/2002 1:59:51 PM
From: Vector1	Read Replies (2) \| Respond to of 52153

I hear you, all I am suggesting is that in the case where a stock has collapsed through no fault of management a new plan can be implemented that trades old out of the money options for new less dilutive amounts of new ones. Take for example a chip manufacturer that has performed will but whose stock is down 75% as a result of the tech recession and the market. Further assume that the strike price on 5 million options is at 100 and the stock at 25. I would seriously consider allowing employees to swap the out of the money options for the new one as long as the swap was on a one for 4 basis. Thus reducing the total options outstanding to 1.25m. In addition the new otions would have to revest. Its a good deal for everyone. V1