Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: GVTucker who wrote (63389)	3/18/2003 11:56:12 AM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 77400

well work it out for me then, thats what I'm asking. 5 million options outstanding at $1. 30mm revenue/qtr, $3mm profit $15 IPO share price, say valuation in the $400mm range. How is this going to work- it seems to me that if you take the large number of outstanding options and derive the "valuation" from the share price you are going to wipe out what little earnings most IPOs have- even the very strong ones. 5 million * $14 = a lot of "expense", are earnings going to have to cover this out of the gate?