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

To: carranza2 who wrote (123137)	8/13/2002 1:33:39 PM
From: Wyätt Gwyön	Read Replies (3) \| Respond to of 152472

As options are treated as expenses, their effect on cash flow will be naturally recognized well, options per se don't have an effect on cash flow as they are a noncash item (although they have indirect effects through their exercise, in terms of cash flow from exercises and tax benefits, and in terms of dilution). although i agree with you that the expensing of options is likely to make companies become more parsimonious in granting them. which is why i agree with you that: Options programs will be reduced like any other unaffordable expense. the question then becomes, how will this affect wages? were people overpaid in the past (through options)? or were they fairly paid? if they were fairly paid, and they are not getting options anymore, then we can expect cash labor expenses to go up (and cash earnings to go down). my personal feeling is that cos overpaid their employees with options. so if they remove options, employees will not get the same amount in cash (although they will probably get something). the key is, how big is that something?

To: carranza2 who wrote (123137)	8/13/2002 1:51:54 PM
From: foundation	Read Replies (1) \| Respond to of 152472

Hey carranza --- Why not branch into old-line companys' highly questionable, if not dubious expensing of pension commitments? Not as titillating a prospective fetish for polar bears as bashing anything technology related, but it could keep conversations on the Buy Range thread from even touching on Q for at least another few months... <g>