Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 36.24

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1:24 PM EST

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To: GVTucker who wrote (173042)	2/12/2003 12:53:34 PM
From: Tenchusatsu	Read Replies (1) of 186894

GV, <Over the past 2 years, the book value of Dell has declined from $6.462 billion to $4.648 billion. This is even though Dell has reported about $4.5 billion in net income over this same period of time, net income that would ordinarily increase the book value of the company.> I thought it was the stock buyback that causes the net decrease in book value. Options only dilute the stock, i.e. negate the only benefit of stock buyback. In essense, this supports what Ali has been saying all along, that companies only buyback stock just to give them away as option exercises. Had Dell bought back the stock when the options were issued, instead of exercised, we'd probably see a different accounting picture. Tenchusatsu

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