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Technology Stocks : Siebel Systems (SEBL) - strong buy? -- Ignore unavailable to you. Want to Upgrade?

To: hueyone who wrote (6352)	9/22/2002 8:20:55 PM
From: chaz	Read Replies (1) \| Respond to of 6974

Huey... start paying attention to "Core Earnings" S&P is going to advance this by reporting core earnings. IMO this will be one of the most telling developments regarding future stock pricing, and it will increase downward pressure until a "core value" point is reached. Siebel employees...Do you think any of them will begin demanding more cash in lieu of options? I'm not certain at all about how individuals will react. It would probably depend on how much cash was involved. Lizzie probably wouldn't be persuaded, and employees who don't really know the situation within the company (most actually are poor analysts when it comes to their own employer) would probably have similar reactions. Just my guess, but I suspect most employees like their "pro forma" earnings. I wonder what Siebel would do if a significant number of employees did ask for cash instead of options, or if their use was curtailed by regulation or shareholder demand. The company is now "hiding" compensation with options grants. If they have to pay out real dollars, their visible costs increase, so I agree with you on this point. How much of this could they stand? How much new pressure would this put on the stock? Companies might react simply by paying less for new hires. (New hires...not anytime soon.) Could salary reductions be a possibility? Many imponderables remain, and most of them are bearish. Chaz