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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 206.05-7.8%Nov 20 3:59 PM EST
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To: whortso who wrote (66252)12/26/2001 12:22:18 PM
From: pgerassiRead Replies (1) of 275872
 
Dear Whortso:

Check the Intel financials again and you would see that the end cost is in the $1+ billion range, cost minus employee purchase price plus administrative costs. That is still $0.15 a quarter in cost not in the supposed GAAP profit in any quarter. Thus last quarter, Intel lost $0.13 per share at least. Going by the net worth losses, they lost over $0.12 a share IIRC and you would subtract the $0.02 dividend and you get a loss of $0.10 a share which is a far drag from a reported GAAP profit of $0.02 a share.

By net worth alone, they lost $0.54 over the last reported year (Q3 to Q3). Far more than the profit of $0.31 plus dividends of $0.08. Face it, Intel has lost money for the past YEAR! AMD has gained money for that very same year! The difference is mostly due to the ongoing employee stock option grants. Intel even had to authorize another 300 million shares for buy back or else they would have to terminate giving of options by Q2, 2002.

Since you seem not to see this, and you are more savvy than the average investor, the SEC is more than justified to add this to GAAP. The AICPA (developers of GAAP with SEC oversight of course) is considering a method to subtract the costs of share buybacks for ESC (Employee Stock Compensation) purposes from the earnings report.

Pete
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