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

To: Roger A. Babb who wrote (864)	7/28/1998 11:31:00 PM
From: Les H	Read Replies (1) \| Respond to of 3339

I thought only Fred Flintstone drove floorless convertibles.

To: Roger A. Babb who wrote (864)	7/29/1998 5:29:00 AM
From: Kip518	Read Replies (2) \| Respond to of 3339

Kip, losing employees because declining stock price deflates options is not a problem...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! Actually, Roger, I didn't mean this point quite that way. What I intended to say was that losing employees deprives tech companies, particular software or net companies of their primary asset, which is human capital. Hence, there are two hits -- declining stock price & declining ability to recoup corporate strength through employment of talented employees. So I think it could be a big problem for some companies and their future stock prices. Kip