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.

Strategies & Market Trends : Gorilla and King Portfolio candidates - Moderated -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (964)	6/15/2004 11:33:52 PM
From: rkral	Read Replies (1) \| Respond to of 2955

Mike, re "total dilution" I haven't found an official definition of total dilution, but assume you're talking about the difference between Diluted_Shares and Basic_Shares .. expressed as a percentage of Diluted_Shares. Correct? Ron

To: Mike Buckley who wrote (964)	6/16/2004 12:27:28 AM
From: Mike Buckley	Read Replies (2) \| Respond to of 2955

Ron, Our discussion of dilution caused by employee stock options continues. Firstly, QCOM's record shows that an average 3.3% of shares outstanding at the end of each fiscal year are due to option exercise during the year. Bear in mind that employee stock options that are in the money add to the dilution. It is not necessary for an employee to exercises his or her stock options for the fully diluted share count to increase. So, if the price of Qualcomm's stock increases, there will also be increased dilution by virtue of the fact that employee options that were previously out of the money would now be in the money and included in the fully diluted share count. (Any CPAs out there, please correct me if I'm wrong about that.) --Mike Buckley