Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: H. Bradley Toland, Jr. who wrote (123184)	8/14/2002 11:19:52 AM
From: LarsA	Read Replies (1) \| Respond to of 152472

If they're not an expense, why can't we all get some?

To: H. Bradley Toland, Jr. who wrote (123184)	8/14/2002 4:02:47 PM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 152472

HBT--This whole issue is overblown. If options should be expensed when issued, why not also give the company a credit on new patents issued? After all, patents, at least for QCOM, represent a far greater asset than the so-called options liability. I don't see any pressure, political or otherwise, to account for the VALUE of patents. Also, it seems to me that the comments of Warren Buffett are self serving. He thinks companies (particularly the big ones he monitors) should expense them immediately. Well, why not? They're making big profits, and expensing the options merely allows the company to get a 35+% tax deduction, courtesy of the rest of us taxpayers. A far more important issue, particularly for the big, mature dinosauers of companies are the pension plans that assume a far greater return on investment than is actually taking place. Now this hurts big old companies more than small ones. I'm glad Buffett notes this issue, but the options one hurts smaller companies more than larger ones. As I've said before, as long as a company notes somewhere in the financial report the dilution affect of the options, I don't care if they expense them now or in the future. I just want to know whether the options exist, how many there are, and the expected time they will be exercised. Art