Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Exacctnt who wrote (46755)	2/12/1999 12:28:00 PM
From: IceShark	Read Replies (1) \| Respond to of 132070

Bob, I would ignore stock buybacks. Treat 'em as a totally separate transaction, which it can be argued they really are. The company has the option to just issue new capital stock to supply option exercise rather than buying back treasury and subsequently selling it. And my option valuation method would not exactly track SAR expense. I would establish a total option value at grant date and amortize the expense as it vests. You could do a simple model and straight line it over the vesting schedule, or cut the grant into multiple chunks and discretely expense as they vest, etc. There is too much abuse overstating the P&L currently and we have to start somewhere. Regards, Ice