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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Tom_ who wrote (3660)	11/20/1998 7:09:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 4509

Tom: (1) GAAP is as GAAP does. The rules are once more coming under scrutiny regarding the reporting requirements. Currently, the costs of options are hidden from shareholders, and appear only as a footnote in the 10-K using the Black-Scholes model. (2) Options are a necessity down here. Not true. This is a relatively recent phenomenon (about 10 - 15 years old). The major recipient of shareholder largesse is upper management. (3) Once you grant them you can't just let them go to hell. Of course you can! This is the argument that was originally given shareholders to justify them. Make recipients sensitive to stock prices. My outrage has nothing to do with the fact that the stock is down severely. I have been critical of the options game with DELL and every other company I am invested in. It is a form of subterfuge. These companies fight tooth and nail with the FASB to prevent the costs from being reported as an expense. It is welfare for upper management! TTFN, CTC