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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: rkral who wrote (63065)	2/11/2003 4:04:37 PM
From: RetiredNow	Read Replies (2) \| Respond to of 77400

Well, mostly the reason that I don't go into too much detail on my views on stock options nowadays is that we've already had this debate before on this thread. So I don't want to go back and try to remember everything I said and repost it. However, there have been multiple displays of numbers showing how if Cisco or Seibel or any other options generous company used Black Scholes, they would have grossly overstated expenses during the bubble years. That is why I consistently have advocated a modified Black Scholes model with a true up every quarter. Another model that I really liked was the one that Coca-Cola is using. Read up on that. They were really innovative about finding a market based way to record the expense, rather than using skewed guesstimates like Black Scholes.