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

To: BWAC who wrote (61179)	8/30/2002 1:28:47 PM
From: Lizzie Tudor	Respond to of 77400

there are also numerous other long term "contracts" (purchasing for manufactured goods, corp travel agents, etc) that companies enter into, some are binding, that imo have as much impact on the future if not more than options. For example my prior company entered into an agreement to OEM another vendors product, if we didn't sell at least 10 we had to pay 200K in Jan 2003. Even though it became clear we were not going to make our obligation we certainly didn't "expense" the a portion of the impending 200K payout across the current period! And besides, last year the company went under anyway... so any forecasting method would have turned out to be invalid. Cisco and others are going out of their way to provide this information, as well as other LT obligations which may or may not come to pass (leases etc). I can't imagine why this isn't sufficient. And try to come up with an argument why the future value of options should be expensed whereas other lt obligations are not... I haven't heard any reasonable arguments. Conversely to the option-expensing proponents here, I would like to state that I will not be buying stock in any company that chooses to expense options, including amazon (although I love the company). I see bowing to the vocal minority on this issue as a sign of weak leadership. And I don't want to invest in a company that understates earnings anymore than one that overstates them! Lizzie