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To: Don Lloyd who wrote (159)	1/29/2003 1:11:03 AM
From: Wildstar	Read Replies (1) \| Respond to of 445

Don, This is all true, but the problem with expensing stock and option grants is that the inflated supply of stock is already helping to determine the market price of a share of stock. Whenever the market price of a share of stock fails to track share count dilution, whether it is the result of a stock split, or a stock or option grant, then this is the result of a valuation change. It is the claiming of an artificial compensation expense for stock or options which results in a double counting. When compensation is in the form of stock or options, this expense falls directly on the shareholder owners in the form of dilution. There is not only no need for an additional expense to be assigned to the company itself, but that assigning such an expense leads to extraordinarily illogical distortions. It seems to me based on your example that expensing stock and option grants is a "double counting" of sorts - both the numerator and denominator in "earnings/share" are affected. Not only is this unnecessary, but it seems also to result in a plain old lie. Exchanges are made when the counterparties have such an extreme disagreement on the value of the goods to be exchanged that they believe that no other possible exchange would be more advantageous to themselves. Are you referring to the value of a counterfeit notes versus Federal Reserve notes in the eyes of the management versus the laborers? Wildstar