Zeev's Turnips Patch-No Politics (ZEEV)

[Train Guy]

This is an interesting way to look at the effect of options.

--Consider Adobe Systems, a leading software firm, headed by a baby
boomer (Bruce Chizen, CEO, was born in 1956). Sales are rebounding.
Earnings are up. But profits genuinely available to shareholders have
all but disappeared.

In the last five years, Adobe's net income has grown from $105.1
million to over $191 million. But stock based compensation in the same
period grew from $50 million a year to over $184 million a year.
Taking into account options expenses, net income shrunk from $54
million to only $6 million. Adobe, a firm valued by Wall Street for $7
billion can only produce $6 million in genuine net income.