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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (10744)	11/7/2002 12:25:53 PM
From: Cary Salsberg	Read Replies (1) \| Respond to of 10921

RE: "Have you looked at how expensing stock options at these companies...will effect their reported earnings?" When I look at tech companies that, usually, don't pay dividends, I compare "earnings" with increased book value and I look at the quality of book. Options are dilution and dilution lowers book. Companies have flexibility with stock options and "expensing" will not be that significant once the mechanics are defined and companies adjust to it. It is not an expense if companies buy back their shares in the open market. If a company grants an option at market prices and move shares bought back at lower prices to a reserve account until they are sold for a profit to an employee exercising an option, where is the expense?