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Technology Stocks : Intel Corporation (INTC)
INTC 37.83-4.2%3:59 PM EST

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To: Ali Chen who wrote (151289)12/6/2001 2:23:25 AM
From: AK2004  Read Replies (1) of 186894
 
Ali, bmw
Ali is right, imho. If company got unusual excess of cash then company needs to do something like pay dividends, repurchase stock, buy other companies etc. Clearly that that is not the case, while repurchase would create extra demand for a short period of time and drive the stock price up that would not come without penalty. Company's risk profile and hence discount rate should be adjusted resulting in a substantial economic loss.
Gaap can not deal with issues like that and that loss is recognized only within internal models
Regards
-Albert
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