"You buy stock, you take a chance that it might go down, even if you're Intel."
No. You are not Intel, nor Intel is you.
The point you are deliberately missing is that
Intel does not hold the shares, it gives them
away in a form of stock options for employees,
as part of compensation for their labor.
During last 4 quarters Intel bought back 121M shares.
During the same period the average amount of commons
was _maintained_ at the same level - 6,720M shares.
Therefore it is obvious that the exact number of shares
exercized by employees was bought back, not more,
not less. Now understand the balance?
"Corporation's stock buybacks and subsequent +/- movements are not normally factored into quarterly profit/loss statements."
Normally? We yet need to define what does
"normally" mean. They are not factored for
the reason to deceive mom-n-pop investors, and
to preserve an image of success in business while
it is not so rosy. This is the well known problem
reported to public by Forbes magazine few years
ago. If you were to factor those real out-of-pocked
money in books, the stock will plummet, the options
part of labor compensation will disappear, people
will flow away, end of business. Which part of
this scheme you do not understand?
- Ali |
