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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Casaubon who wrote (38926)	8/13/2002 1:59:53 PM
From: TimbaBear	Read Replies (1) \| Respond to of 52237

Casaubon You may choose to believe that I don't understand Black-Scholes if that keeps your world safer for you. The tenet of my conversation has never been clarity in reporting... That says volumes. Wherein, we agree on the method of expensing at exercise. We do not agree on Black-Scholes, as you do not seem to understand it. How can you say that we agree when you insist on a fictitious form of valuation and I support actual cost accounting? The granting of the options help attract and retain talent. So what? It is not the only way to accomplish this. Until the last 10 years, it wasn't even a major way. Besides, as an investor, the implied benefit for me in your assumption is that I will get to share in the increased resultant profitability from the better talent. I don't see that happening at the major users of stock options. I see owner's paid-for interest in the company being diluted, profits going down, "one-time" write offs escalating, no dividends from the companies with the biggest stock options usage/abuse. And the only claim to profitability coming mostly from saying employee cost isn't company cost, it's ownership dilution, thereby not hitting the income as an expense. What's next, paying vendors with stock options? It's ludicrous and defending it just as ludicrous. Just because the employee's gamble didn't pay off doesn't mean the options grant was valueless. I never said it was valueless. What I differ on is when to recognize the true value/cost. I believe it should occur when the option is exercised and the company has to buy the shares to prevent the dilution. You believe in using gimmicry. Have you looked at the Statement of Cash Flows for DELL's most recent 10K? Timba