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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: Pirah Naman who wrote (3341)	6/24/1998 7:34:00 PM
From: J. Kerner	Read Replies (3) \| Respond to of 10309

Pirah, My impression is the calculations are not as damaging as the FAS 123 shows and the effect once the options are exercised would be a dilution of stock, minus any buyback the company is participating in (which WIND currently is doing.) I also still contend that my two main observations are valid. One, if the stock price increases dramatically, the effect seen in the FAS 123 statement will be much greater because the volatility is high and the option strike prices are far below the current price. Therefore, you cannot compare the FAS 123 between a company whose stock has risen with a company whose stock has dropped. Two, if another company's employees have exercised all their options then their options will not show up as part of the FAS 123 and therefore a comparison of their FAS 123 with WIND would not be valid. If you have any specifics which contradict the points above, please post and I will stand corrected and will have learned more about FAS 123 at the same time. Regards, Jason