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Technology Stocks : Stratex Networks, Inc. (STXN) -- Ignore unavailable to you. Want to Upgrade?

To: Rob Preuss who wrote (1727)	8/2/2006 5:32:07 PM
From: The Ox	Read Replies (2) \| Respond to of 1762

$3 million a quarter in stock options seems excessive for a company that only had $5 million in Income before taxes. Looks like another company that is going to constantly dilute investor's profits and turn them over to insiders. I'm not surprised but I am disappointed. $12 million or more a year in stock options for a company this sized is very excessive, IMO. 6.3% dilution in number of shares, year over year and it will get worse as they make more money per quarter. I can see 5% of profits going to employees but 5% of revenue going to insiders is too much and I don't think a company that does this should have as large a PE multiple or a high price to sales ratio. Keep in mind that one big reason SG+A goes up with sales is due to higher commissions. Then tack on excessive options and the stock holders get a double whammy to reduce their investment returns. Otherwise, the numbers aren't bad. Flat guidance should allow the company to exceed again this next quarter.