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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (130100)	7/10/2003 9:46:43 AM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 152472

Darfot, if MSFT restates its earnings to allow expensing of options and providing stock in lieu of options, it only shows what size can do. For a company as large as MSFT the effect on earnings is minimal. For companies just starting up, with, say market capitalization less than $1 billion, this policy really cuts hard into earnings (if any). The point is, MSFT doesn't have balls, and smaller companies aren't spineless. Frankly, I think both policies (expensing options or providing stock) are extreme. A better method, at least for small companies, would be to expense options only to the extent to which the option can be exercised. Art