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To: Don Lloyd who wrote (178)	3/17/2003 4:31:05 PM
From: TimF	Read Replies (1) \| Respond to of 445

If you keep giving out more shares then have reverse stock splits the number of shares that the current shareholders own keeps going down (except the ones that are getting options). I think a series of reverse stock splits acts to decrease demand for the stock. They are usually seen as a bad sign for the company. I do agree in theory, or even in many cases in practice that giving compensation through stock options can maximize value for the current shareholders. I also think that many companies have given to many stock options to employees but that is equivilent to paying them to much, the problem would be at least as bad if they where overpaid with cash. Tim