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To: Hardly B. Solipsist who wrote (17733)1/4/2003 9:33:59 PM
From: robert b furman  Respond to of 19079
 
Hi Hardly,

Well there may not be dilution - but I'd call it out of one pocket and into another and the stockholders darn sure didn't get a thought.

I think management would focus more on EPS performance if options weren't handed out like candy and sold regardless of the stock's price level.

The flood just overwhelms.

Don't get me wrong - I'm not totally againsr options as an incentive - but to the degree they are misused it comes at the stock holders expense.

In my world we own the company - they make money and a pay check.They don't dilute our ownership for their wel being - unless we're dumb enough to vote on it and allow it.

I used to be very liberal on managements discretion to use these incentives.

With time I believe it was swung the pendulum too far and now stockholders must be more vocal about " HEY THAT"S MY GD MONEY YOUR PIGGING OUT ON !!"

When it happens to the demise of the stocks price then I really get vocal.

JMHO

Bob



To: Hardly B. Solipsist who wrote (17733)1/5/2003 10:10:40 AM
From: Qualified Opinion  Read Replies (1) | Respond to of 19079
 
Hardly, the dilution is in the use of the corporate cash to repurchase shares. Dilution of book value.

IMO, options can be considered a vehicle through which a corporation can indirectly transfer its cash to a selling insider when an active repurchase program is executed.

Rob