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Technology Stocks : Intel Corporation (INTC)
INTC 36.38-1.3%Dec 22 3:59 PM EST
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To: pgerassi who wrote (172074)12/2/2002 2:53:42 PM
From: GVTucker  Read Replies (1) of 186894
 
You fail to see the big picture. If shares repurchased yields a lower book value, why do it? The only explaination is to cover something else up.

Wrong.

That is only true if the stock is truly "worth" less than book value. If it is "worth" more than book value, then a repurchase might lessen book value but enhance shareholder value.

There are a good many stocks whose market value should be more than book value. Things like brand value, which Intel does indeed have, would make a company worth more than book value would indicate.

Remember the original argument is that Intel is losing money contrary to the published reports. Counting all the reductions in equity, Intel has lost $13 billion over the last few years. This is mostly due to two things, overpaying for acquisitions and off P&L employee compensation. And of these, options are the true reason that Intel has lost $13 billion without needing to claim any loss.

I showed you in my previous post that the above statement is false. If you continue to repeat the mistake I'll have to assume that you aren't mistaken, but rather that you are intentionally trying to deceive people.

Since this is allowed by GAAP does not mean it is right!

How true. And that is why looking at the book value of equity can be deceiving, contrary to what you maintain.
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