Value Microcaps Motherboard

[cliffvb]

Re: options for execs
I recently read a book titled Blind Faith by Ed Winslow. It deals with the ways that the system short changes the public stockholders.

The proliferation of executive options in recent years is one method. Lots of advantages to options for execs and mgmt. Stockholders don't focus on options as they do huge salaries...The corporation is not out any cashflow with options....Options are not expensed on the P & L (although that is changing now). As an example, Microsoft showed a profit in 1998 of $4.5Billion. Had they expensed option costs, they would have shown a loss of $2.3 billion that year.

The book also covers shortfalls in pension accounting which is in the news of late, mutual fund and analysts dismal performance records, the lack of oversight by the SEC and other subjects. It is a pretty good read.