Gilbert

Google (GOOG): About 85% of employees have some stock options under water. GOOG is going to offer employees a voluntary one-for-one stock option exchange. Could this be costly?

It's interesting how this was phrased in the call i.e. no dilution effect "The number of Google shares subject to outstanding options will not change as a result of the exchange offer."

This is of course not the case since the number of shares outstanding options would be falling since the employees would not be excercising options which were massively under water and these would expire over time.

It also means a bigger transfer of equity value from the company to employees since the company will receive less cash for the shares purchased. This cash difference will be transferred to the employees since they will be able to sell those shares at a bigger profit having purchased them at a lower price than they can now.

Same dilution, instead of less dilution, and less money in the company's coffers.

Begs the question as to whether there is any real incentive to stock options if employees know they will be repriced if the stock goes down!

9 Remarkable Stats on Google

See bullet point 6 profit margin should be 43%, truly amazing numbers!!

The "Incredible" Israeli Shekel

This article has a very strong geopolitical focus - I would have liked to have seen some analysis of previous periods of Shekel devaluation in order to better understand what kind of conditions (aside from Geopolitical issues) are likely to reverse the current trend.

I would guess that a weaker global economy leading to weaker exports, lower inward investment and a better sentiment towards the dollar would be candidates for economic changes to devalue the Shekel vs the Dollar.