Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 36.20

+0.1%

Dec 26 9:30 AM EST

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To: Robert O who wrote (139551)	7/18/2001 3:39:10 PM
From: pgerassi	Read Replies (1) of 186894

Dear Robert O: You do not know enough about accounting and how it models the real world, do you? Total stockholder equity holds the cumulative profits not distributed to shareholders. From the perspective of shareholders, it is this number that shows the current state of affairs. It doesn't change with reclassifications of money that Intel seems to do all of the time. If Intel was truly making money (increasing assets over liabilities) that number must go up. Since it isn't, the money is going somewhere. Most likely, it is going to employees in the form of stock options which are not counted as an expense but, reduce true profits for shareholders. GAAP has a change in the works to force that expense to be part of the income statement and thus be reflected in the GAAP EPS number. When Intel was making money hand over fist, it made little difference (but I think an important one) but, now it means the difference between losses and profits. Pete

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