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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?


To: Kip518 who wrote (858)7/28/1998 8:46:00 PM
From: Les H  Read Replies (1) | Respond to of 3339
 
I would hardly consider MSFT and CSCO stock to be under water at
this point. What were these people saying a year ago, nine months ago, or even three months ago when these stocks were considerably lower and were entering "corrections"? In every one of the cases you cite, it's always the person who doesn't own the options who is stating these concerns.



To: Kip518 who wrote (858)7/28/1998 9:57:00 PM
From: Roger A. Babb  Read Replies (2) | Respond to of 3339
 
Kip, losing employees because declining stock price deflates options is not a problem. The companies just reprice the options lower. CTXS did this last year after its big crash, repriced from about $40 down to $10 or so. The bad news is for existing share holders who now get diluted by a bunch of cheap options. Because of the repricing strategy, empoyee options are almost as bad as floorless convertibles!