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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (123136)	8/13/2002 1:27:13 PM
From: carranza2	Read Replies (3) \| Respond to of 152472

the thing is, if we want to ignore options as a present expense, then we must make an assumption about their future dilution to cash flow. I hate to participate in this tired discussion but will do so simply to make a point I don't think has been made yet. As options are treated as expenses, their effect on cash flow will be naturally recognized. When they impact earnings and therefore stock prices in a substantial way following their recognition as expenses, they will become more limited. Options programs will be reduced like any other unaffordable expense. In other words, the glory days will be over. Since many options are underwater now, one could say that they are already past us. They will not be the bugaboo that many think they are.

To: Wyätt Gwyön who wrote (123136)	8/13/2002 1:46:48 PM
From: slacker711	Read Replies (2) \| Respond to of 152472

it is beneath you to put words in my mouth. leave that to others who have no scruples. Relax.....It was just a rhetorical device. I felt fairly comfortable thinking that you agreed with both of those positions. At least for me, those two positions lead me inexorably to the conclusion that expensing options will not have an effect on the long-term performance of the market. Most of the rest of your post deals with determing the correct current price for the market or individual stocks. As you say, no method is perfect....over the short term. Over the long-term, the DCF will rule in the end. If we did have all of the various inputs we needed, I feel fairly comfortable saying we would have some idea of where the stock price would be in 10-15 years. Qualcomm's share price is going get to that identical destination (plus or minus some unknown delta) regardless of it's decision on expensing options. Slacker