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Actuate Corporation Message Board

  • knowledgedigger knowledgedigger Aug 17, 2000 9:48 PM Flag

    ACTU and MOTB -- to the moon!!!

    >>>ACTU<<< -- According to
    recent SJ Mercury News Article, the most undervalued
    profitable little software house in

    * They just won't give anything to the investment
    bankers, so those cheats won't cover them.

    * Even
    so, on Goldman Sach's "recommended list"

    * On
    CSFB's "strong buy" list

    * On ChicchiDiAssi007's
    "kick-ass" stock list

    * ChicchiDiAssi's target price:
    $679 -- NO, $857 by end of the

    >>>MOTB<<< -- Mark-of-the-Beast (tm) e-commerce company. A
    great new e-commerce infrastructure play.

    Infrastructure tracks money flow through economy, from supplier
    to manufacturer to vendor to distributor to

    * Obsoletes paper currency, credit cards, bank
    accounts, checks, etc.

    * Idea has been around for a
    long, long time (1930 years at least)

    Permanent circuit-based ID integrated into consumer's
    forehead or right hand, indelible, secure.

    * This
    one's gonna fly, baby! Gonna roll out soon.

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    • Please inform us more about options costs. I'm
      interested, I myself haven't looked into accounting rules,
      and have only my limited, but personal, experience to
      go by.

      Again, from what I've seen in the
      past, an employee exercising an option is a NET GAIN to
      the company (the employee is purchasing the share),
      not a loss. The shares the employee buys come from
      the company options pool, not from the open

      I suppose that if a company ran out of options in
      the option pool, then they'd be in trouble. Employee
      says, "I'll exercise 1,000 shares at $2.00 per share."
      They give the company $2,000 and get their shares. The
      company say, "Oh no, we have no more options in the pool
      -- we had to buy on the open market!" The company
      buys 1,000 shares at $35 per share. The company in
      this case is in the hole $35K - $2K = $33K. But
      companies are smarter than this! Again, please, tell us
      where the real cost is, as visible in a line item (per
      FASB rules).

      If, as you suggested, the company
      paid out a cash bonus, then this WOULD affect the
      company's bottom line. The bonus would be a compensation
      cost, with direct impact on the quarterly earnings
      statement. Options are better for both the company and the
      employee. More incentive for the employee to work
      (potential huge payoff), no impact on the company's bottom

      It's the shareholders that get screwed, but usually
      they don't know or don't care, because they're making
      off quite well too! The key for the company/employees
      is to bleed options shares into the market slowly so
      that nobody realizes -- of course, this is a big
      challenge after the 6-month post-IPO lockout period for
      many companies, many employees rush to sell at that
      point. But for the most part it works. The frogs in the
      pot don't know the water's reaching boiling point.

    • Options are an expense to a company and do affect
      earnings. FASB (Federal Accounting standards board) rules
      are lose regarding how companies report the cost of
      options. Very few accurately report the cost of the
      options, others include a foot note in their annual
      reports. They are not obligated to shaow the affects on
      their balance sheet.

      Bottom line: Options are an
      expense/cost to a company and they dilute shareholder equity.
      I would prefer if they paid cash bonus, than dilute

    • if you include cost of employee stock options
      compensation than this "profitable" company had a loss for last
      4 q aprox 40 mln $, it will be more than 1$/share.

    • You didn't mention a target price for MOTB. May we assume $666?

    • >>> ACTU <<<

      And also, ACTU is the *prize* in McDonald Investment's award-winning Happy Meal Portfolio!!!