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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (61178)	8/29/2002 11:25:37 PM
From: BWAC	Read Replies (1) \| Respond to of 77400

<I believe options are accounted for currently in a clean, undisputable manner, and that is the fully diluted EPS.> Thats what I keep coming back to as well. Plus this: schaeffersresearch.com Click on StreetTools. Then Option Tools. Then Pricing calculator. Take MSFT vs. KO for Sept 2005 55 Strike Option. Assume beginning price was $50 for both stocks today. With MSFT the theoretical value and expense of 1 option would be $14.59 With KO the same parameters would be $7.65 (be sure and imput in the 20 cent quarterly dividend). Difference due mainly to the different implied volatilities. So should one company's Option expense be 100plus% higher for the same exact grant? Should the estimated expense be so highly predicated upon the volatility of the stock? Even though such high volatility ALSO increases the chance that the option grant will become worthless?

To: Lizzie Tudor who wrote (61178)	8/30/2002 9:31:07 AM
From: hueyone	Read Replies (1) \| Respond to of 77400

He's on every thread I follow. Every one. About once a week. Tsk, tsk, tsk Lizzie. Anyone can click on our profiles and check your assertion. I post almost exclusively on G&K, LT Investors, Employee Stock Options, Q Buy Range and Cisco. I believe I have only had 8 posts outside of those threads in the last two months---four or five on Intel, one on Amazon and two on Elon. I had one flurry of posts on Siebel several months ago. I don’t claim that I could keep up with a short term trader like yourself who is all over SI alternatively pumping and dumping companies depending on your position of the week---although I will admit you are mostly pumping these days. I would consider posting on the Home on the Range thread if only I didn’t have a job and could afford to take the time to learn to be a winning trader. I would consider posting on the “New Economy” thread if only I could figure out what “New Economy” means. <ggg> Maybe you can define this expression for me? As I mentioned a recent post on LT Outpost, in my opinion there are larger issues associated with the employee stock option debate other than whether I as an individual choose to invest in a company that fails to expense stock options. Gross misallocation of capital in the American economy and ultimately a weakened, American economy have been two end results of failure to expense stock options in my opinion. Steadily eroding investor confidence in the integrity of our public markets is another. Best, Huey