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

To: Richard Tsang who wrote (3683)	11/22/1998 8:38:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 4509

Richard, while I understand the concept you are advancing, I think you are incorrect in using the word "earnings" in your discussion. Unfortunately, the exercise of warrants at whatever the strike price has no affect whatsoever on earnings. It does affect equity per share however. And I think you are naive in contending that the purpose behind employee options is the attraction of talent. That's what salaries and cash and profit sharing are for. The purpose of the options is to hide these costs from shareholders and thereby artificially inflate earnings. TTFN, CTC