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To: BelowTheCrowd who wrote (178963)8/10/2004 1:11:00 PM
From: Lizzie Tudor  Read Replies (1) | Respond to of 186894
 
If they've got 10% of their stock out there as options that are vested and are going to be exercized, then they are going to have to either buy back that many shares, or have their EPS number come down significantly as the options get exercized.

Not in a hypergrowth environment like an ebay, yahoo or google, that is the point. Sure ebay could give out NO options and their EPS would be even higher than it is now, but you could say the same thing about hiring staff, if ebay hired NO staff going forward their EPS would also be higher. As long as a company is growing and EPS is growing, thats what WS wants to see.

All these options hawks like rkral and hueyone are looking at mature companies like intel and cisco and saying they give out too many options.