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


To: LLCF who wrote (6934)8/19/2002 9:28:35 AM
From: Biomaven  Read Replies (1) | Respond to of 52153
 
DAK,

No, in FAS 123 the expense is amortized over the vesting period - intuitively the period over which the options are "earned." Any expense is reversed (in the year of cancellation) for any options that end up being cancelled prior to vesting.

If you don't expense the options at all, the only visible effect on the earnings statement is the increase in diluted shares outstanding (or in basic shares once they get exercised).

Peter



To: LLCF who wrote (6934)8/19/2002 11:58:09 AM
From: Logain Ablar  Read Replies (1) | Respond to of 52153
 
DAK;

If one goes by the action in DYN and extrapolates it to ELN (of course all situations are different) then when ELN announces a sale of one of its assets the stock should break upside resistance in the $2.70 area.

Also in my experience when a company removes a floorless (its debt obligation allowing the debt holders to short with abandon) the stock also has a strong move.

I noticed this one when you commented on it over @ CFZ. I have positions between $1.8 and $2.

I am assuming there are no more skeletons in the closet (except for further portfolio writedowns) or all bets are off. As far as I can read the odds (odds only) favor the long side on this one.

Tim