In a recent article in the Wall Street Journal, Herb Greenberg discussed our firm's approach of avoiding companies loaded with stock options. The article notes:

Mr. Meyer focused on options long before they became a lightning rod in the market. In 2003, while at his own research firm, he penned a piece that argued eBay's real free cash flow was negative after deducting the amount needed for options-related purposes; it led to a Harvard Business School study. "I always start my research at the proxy statement," Mr. Meyer says. That's his first line of defense on companies to avoid; it's also how he finds companies he might want to buy.

Those with a subscription to the Wall Street Journal online, can read the full article HERE.