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To: Don Lloyd who wrote (64629)	9/15/2003 11:00:51 PM
From: Victor Lazlo	Respond to of 77400

oh .. more options discusssions .. how titilating .. zzzzzzzzzzz zzzzzzzzzzzzzzzzzzzz .. zzzzzzzzzzzzzzz zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

To: Don Lloyd who wrote (64629)	9/16/2003 11:33:52 AM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

Hi Don, I would not call it fraud nor a masking of excessive dilution. It only feels that way to shareholders because it's only when companies repurchase shares to combat dilution from stock options issuance that shareholders start to accutely feel the pain from how much these stock options are costing them. Dilution is a bitch in disguise. Wait until the pig no longer has lipstick on it and options are expensed. Then let's see how much in favor of stock options most shareholders are!

To: Don Lloyd who wrote (64629)	9/18/2003 12:19:39 AM
From: hueyone	Respond to of 77400

These criticisms are completely correct (regarding Dell) So you seem to be in agreement with me that there may have something amiss at Dell. Shareholder wealth was disappearing simply to repurchase shares to offset dilution. So let's take an imaginary company, company ABC, and have it spend precisely all of its its reported earnings every quarter to repurchase shares that happen to precisely offset dilution. Those who are looking for dilution to represent the injury to shareholders will miss the ball because there is no dilution. Those who think the current income statement, which fails to expense stock options, will also miss the ball, because the reported earnings will later disappear. Imo, for company ABC, expensing options and reporting zero earnings would clearly present a much more accurate picture of how ABC company is doing than reporting earnings that are never retained for the owners. Using "earnings" to repurchase shares to offset dilution, is really nothing more than a sneaky way of keeping reported EPS high, while keeping what is really employee compensation expense off the income statement. Regards, Huey