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To: At_The_Ask who wrote (64383)1/23/2003 5:04:47 PM
From: At_The_Ask  Respond to of 209892
 
AMGN

three-of-three.com

Anytime you get a flat ed like that the danger is that it could be a B triangle. Structurally there isn't much difference but one implies hard up and the other hard down.



To: At_The_Ask who wrote (64383)1/23/2003 5:07:16 PM
From: Moominoid  Respond to of 209892
 
Will need to look at the option expensing thing. Shipping is a real cost so...

Anyway the stock doubled in that time frame:

siliconinvestor.com

Here is some info:

* During the first quarter 2001, we offered a limited non-compulsory exchange of employee stock options, which results in variable accounting treatment for approximately 5 million stock options at December 31, 2002, including approximately 4 million options granted under the exchange offer that have an exercise price of $13.375 and expire in the third quarter 2003. Variable accounting treatment will result in unpredictable charges or credits dependent on the fluctuations in quoted prices for our common stock, which we are unable to forecast.
* At December 31, 2002, cumulative compensation expense associated with variable accounting treatment, including $31 million in the fourth quarter 2002, was approximately $60 million--based on exercises to date and a quarter-end closing common stock price of $18.89--of which $40 million is associated with options exercised and no longer subject to future variability.
* We have quantified the hypothetical effect on stock-based compensation associated with various quoted prices of our common stock using a sensitivity analysis for our outstanding stock options subject to variable accounting. We have provided this information to give additional insight into the volatility we will experience in our future results of operations to the extent that the quoted price for our common stock is above $13.375. This sensitivity analysis is not a prediction of future performance of the quoted prices of our common stock. Using the following hypothetical market prices of our common stock above $13.375 (including the actual expense associated with options exercised), our hypothetical cumulative compensation expense at December 31, 2002, and the difference between hypothetical cumulative compensation expense and actual cumulative compensation expense recorded at December 31, 2002, resulting from variable accounting treatment would have been as follows (in millions, except per share amounts):

$31 mil is still not as much as the reduction in amortization....

moom