More and more money is being deployed into a narrower and narrower area.
In each case, this trend did not ended well.""It appears more fruitful to look at companies in the context of their total enterprise values, as opposed to their market capitalizations. To understand whether a company's shares are mispriced from the perspective of a whole owner, it is crucial to understand first what it would take to own the company outright.""With the S&P/TSX composite index close to its record high, it is difficult to argue that the overall stock market is beset with pessimism, but in my portfolio, one sector is deep under water and out of favour: oil-service stocks.
Take this example, from The Wall Street Journal, which began investigating the practice last fall: "Suppose an executive gets 100,000 options on a day when the stock is at .
Exercising them after it has reached would bring a profit of times 100,000, or million.
The latest revelation is likely to add to questions about Apple’s disclosures about its internal investigation into the backdating issue. Jobs over the matter, saying that while he had been “aware” of the backdating “in a few instances,” he “did not receive or otherwise benefit from these grants and was unaware of the accounting implications.” According to an Apple filing in 2002, the options under review were handed to Mr.
Jobs in October 2001, at an exercise price of .30 a share.
Steve Jobs, chief executive of Apple Computer, was handed 7.5 million stock options in 2001 without the required authorization from the company’s board of directors, according to people familiar with the matter.
Records that purported to show a full board meeting had taken place to approve Mr.
The lower the strike price, the greater the potential for making money when exercising the options.Here's a look at companies that have come under scrutiny for past stock-option grants and practices.THIS SCORECARD WAS LAST UPDATED IN SEPTEMBER 2007 AND IS NO LONGER BEING UPDATED. Note: This list contains companies that have disclosed government probes, misdated options, restatements and/or executive departures as of Septmeber 2007.Wes is the founder of Alpha Architect, a firm which manages quantitative equity strategies for clients using factors like value and momentum.He also advocates for a more concentrated, pure approach to factor investing, which listeners know is music to my ears." [audio]"We've seen this act before.