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 : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (5187)	5/26/1998 8:01:00 AM
From: Skeeter Bug	Respond to of 42834

>>I believe that this was the result of Intel purchasing stock off of the market for the purpose of the conversion.<< oh, but i was told that companies don't outlay any cash for options. only other shareholders do. ;-) the bottom line is that if i issue 1 million shares as options and buy back 1 million shares I HAVE SPENT A LOT OF MONEY TO "PAY" FOR OPTIONS THAT NEVER SHOW UP ON my income statement. this happens ALL THE TIME! i prefer to buy businesses and not accounting tricks or gimmicks that can go away with the stroke of a pen. true, if you jump through the appropriate holes and waste oodles of time you can figure out which is which. but why? so the companies can sucker some naive people? why? to prop up their stock price. if it is a "follow the money" deal - and only that - then the companies ought to agree not to spend any money to support their current "fix." i follow billions upon billions being spent to support option schemes. this is actual cash flowing out of the company - in some cases cash the company doesn't even have. i believe ibm is borrowing billions to support its share buyback program that, in turn, supports its option "fix." while a neat "trick," i'm not sure it is in the best interest of america to provide an incentive for accounting gimmickery vs an inventive to improve the business. gimmickery is so much easier. and that SCARES me. but, i know how puts work and will use them when necessary. the longs are the ones that need to be scared if this chicanery blows up.