albert
I agree that there is questionable "validity" to the GAAP evaluation, since it doesn't require certain expenditures. In reality, though, I don't think there is a clear cut way of addressing this. While it appears Intel is spending money on stock buy-back only to reissue more shares than they bought, it would be foolish to assume that they aren't getting some kind of return for this investment. Dan3 and Ali like to think of Intel throwing dollar bills into the wind, with no visible benefit, but I'm sure you know that businesses don't operate like that. Money is spent on items of value, even if that money is in the form of gathered stock shares. My point was that this form of exchange *is* accounted for, despite claims to the contrary. While Ali may now argue whether it should be counted in terms of earnings over cash flow, the fact is that it is accounted for, and legally. As for the risk aspect, that was never a factor in my argument, but I admit that companies tend to do risky things, and Intel is no exception. If you want to get technical, every dollar that they spend is a risk, though, so I suppose your concern over this depends on your definition and valuation of the term "risk".
Regards
-BMW
P.S. It's nice to see that your mastery of English has suddenly much improved. :-) |
