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Technology Stocks : Intel Corporation (INTC)
INTC 39.51-3.1%3:59 PM EST

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To: Ali Chen who wrote (173386)3/8/2003 4:29:09 AM
From: rkral  Read Replies (1) of 186894
 
OT ... Ali, re "Actually, it would be a good test of your accounting technology if it will match the actual $1B/quarter stock buyback - all historical data are there."

Put bluntly, that would be a waste of time IMHO. There is no reason to expect any correlation between option shares granted, or option shares exercised, ... and common shares repurchased.

Some companies that *do not* have an option program *do* repurchase shares to bolster their EPS. Many companies that *do* have an option program *do not* repurchase shares. The later just let the EPS dilution happen.

That begs the question "Should companies repurchase shares to forestall dilution?" I think the answer is sometimes. But a company should only purchase its own shares when they can be purchased at prices below fair value, .. even if it grants options.

What's fair value? That's entirely another discussion. "Beyond the scope" as they say.

Regards, Ron
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