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

To: jayhawk969 who wrote (6911)	8/15/2002 10:41:37 PM
From: LLCF	Respond to of 52153

Dell is one of the biggest players of that game. Company options programs kept lots of big players on options exchanges [and I-banks trading desks] flush for years. Now it's over... for now. DAK

To: jayhawk969 who wrote (6911)	8/16/2002 9:37:39 AM
From: Biomaven	Respond to of 52153

<DELL options> I don't think anybody questions that if a company's stock appreciates substantially there will be massive option gains to employees. From an analytical viewpoint, these gains almost certainly massively exceeded the expense for these options under FAS 123 - this is the other side of the coin of the deeply underwater (and essentially now valueless) options that are still being expensed by the telcoms and other casualties of the bubble. If you adopt some sort of true-up approach, then you will get large additional expenses every time the stock price appreciates, and large credits when the stock depreciates. I think the deeper question is whether Dell would have been as successful as it now is if they had not widely awarded employee options in the very early years when it was still small. Peter