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To: Mick Mørmøny who wrote (84178)	12/8/1998 11:49:00 AM
From: Chuzzlewit	Respond to of 176387

Thank you for the post Madafas. This article should be required reading for all investors in technology and drowth companies. An important excerpt from the article is: Stock options have become an increasingly popular way to pay executives, and even some nonmanagerial-level employees, because no expense is recorded on a company's annual profit-and-loss statement, yet the company gets an income-tax deduction. Instead, the expense is treated as a change on the company's balance sheet, where assets and liabilities are recorded. As options have become more common, the practice of repricing them when a company's stock price falls has also spread. Some companies have repriced options three, four or five times in recent years. Since the stock market's dip over the summer, repricings have been disclosed in regulatory filings by more than 100 companies. But what the article does not point out is that when the expense is not borne explicitly by the company it is borne implicitly by the shareholders. In fact, there ought to be no difference in total wealth because the consequence of the issuance of additional shares at below market price should have the effect of driving the price of the stock down. But the subterfuge of allowing a company to avoid this item as an expense gives shareholders a false sense of the "quality" of the earnings. TTFN, CTC