Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 35.53

-1.1%

Nov 14 9:30 AM EST

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To: Saturn V who wrote (96157)	1/14/2000 2:20:00 PM
From: Ali Chen	Read Replies (2) of 186894

S5, <Clearly Intel sells the stock to the employees, and the sale generates cash for Intel, and to describe cost of the stock buyback as employee compensation is .. absurd.> Clearly you need to check your facts: biz.yahoo.com You may find out that the majority of options get exercised at $2.50 - $5.00-10.00 range. But these shares needs to be bought at current price, and even at deeps it was about $80. Do your math, and the difference clearly goes into employee pockets. This is still called as "compensation package", and therefore the cost of this sell-buy transaction is clearly a Salary Expense. Indirectly. So indirectly that it is tough for some to understand. If you are concerned that the stock buyback reduces dilution, think again: the 71.3M shares for 1999 is only 3% of the outstanding ones, while overstatement in earnings due to creative accounting is 70%. What is absurd that the proceeds from stock sale are accounted as you say, while the buybacks are not. Making up revenue numbers by selling stocks is a nice "financial engineering". BTW, congratulations to longs on the runup. Some smarts got ~$7B in real profits while suckers are buying... clearly funny.

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