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Strategies & Market Trends : Option Granting Practices and exploits -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (40)	9/10/2006 7:39:47 PM
From: RockyBalboa	Respond to of 165

Hi Lizzie, I disagree because of two reasons. One is the accounting issue. Legions of accountants and auditors spend days and week to count every bean in the company to precisely state assets and liabilities up to each cent of a dollar. Then, an option grant is done somewhere in the past - well a little bit backdated - and no one seems to care. Why not do away with accounting at all? Its irrelevant... Then there is the insider issue. Stock trades by insiders are highly regulated and godforbid, if one insider buys right ahead of important news fingers are pointed quickly at and the insiders climb high on wanted lists. Options? Right ahead of an important decision? With their unique payout profile - "Heads I win, tails you lose" and often cashless feature they are as I said earlier even more detrimental to outside shareholders. I looked at Brocade and Cyberonics, very likely the two worst excesses in self-dealing and I'd think when nothing comes out of those 2 cases and others, then it has been proven again as I also remarked some month ago essentially a license to steal. After all, its not only the sec but some agressive bondholders who might be quite interested to put some heat on a company particular if they delay filings - as seen from some option related examples.