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To: TimF who wrote (179)3/17/2003 5:02:24 PM
From: Don Lloyd  Respond to of 445
 
Tim,

I also think that many companies have given to many stock options to employees but that is equivilent to paying them to much...

I agree, but the problem is not the lack of expensing of options, but rather the buying back of shares with shareholder cash to mask share count inflation. The only two legitimate reasons for a company to buy back shares is if the share price is exceptionally low or if the alternative is to pay out the share purchase price in cash dividends instead.

Regards, Don