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 : Free Cash Flow as Value Criterion -- Ignore unavailable to you. Want to Upgrade?

To: TimmFred who wrote (225)	12/5/1997 6:29:00 PM
From: john harris	Respond to of 253

Did anyone catch the article in Thursday's Wall Street Journal talking about the options grants to Microsoft employees and the cost to Microsoft's actual (as opposed to reported) earnings?? It's a major vote for looking beyond earnings and to cash flow. But not cash flow, EBITDA, as we know it. Gotta watch the funny stuff in the "financing" and "investing" sections of cash flow. I don't care where the money comes from. If it creates a financial loss to the company, it's spent money. The one item omitted in this article was the fact that the corporation gets a deduction for the employee benefit of the stock option appreciation at the time of exercise AND gets to take in the cash from the employee when he exercises. I expect the government to step in on this party and confiscate the booze within the next few years.