How can you tell me mini that if your trading rules provided a short here that you would not want to take it??? You could have hit your profit target it in the first 30 minutes of trading...
The difference between 2000 and today is there is no huge bubble. We have a small bubble today in commodities but commodities do not represent a significant part of the market. We had a bubble in 2000 in the entire nasdaq and we had dot com companies with no earnings worth more than most of our fortune 500 companies. The market is forcing me to be a bear right now and we may very well be in the first leg of a bear market but the chances of this being a total collapse like 2000 are slim to none in my opinion. We have real earnings in 2006. Corporations are cash rich right now as they have not spread that wealth to their employees. The only real negative for companies right now are these post- dated options. This can turn into a real can of worms.
I just wonder what earnings would like like if companies had to expense their options FASB seems to be asleep at the wheel again.
I'm not positive on this, but I think they do have to expense options now. I thought that is how these post-dated options got exposed. Anyone know for sure?
The commodities bubble is gone. Floors in oil and gold have been put in. "why krazy, WHY do you say such things?" The other markets reacted steadily when commodities ran up and have since retraced and normalized - leaving commodity prices alone in the stratosphere. Trading ranges have narrowed with respect to volume and the trend has been put in. The gold market is too small to be relied upon as an indicator - central banks like to depress the value of gold to give everyone that warm and fuzzy feeling - but they can't do the same to oil. i'm looking for another leg up in commodities in the next 4-8 weeks. note, i do not expect the companies that process and mine commodities to follow in this leg.
Its purely voluntary, some non tech companies did voluntary choose to expense them. But most do not Silicon valley has lobbed hard to keep this from being mandatory. I every company in the SP 500 had to expense their options earnings would plummet, and valuations would sky rocket. The shell game goes on.
I agree, and it's really getting out of hand right now. What a sneaky way to pay people. As far as I'm concerned it's stealing from the company. (referring to backdating)
Yes, companies are now required to report the estimated cost of employee options as expense (FASB 123R).