Intel Corporation (INTC) Message Board

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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: rkral who wrote (178118)	5/26/2004 9:26:31 AM
From: GVTucker	Read Replies (2) of 186894

rkral-- Using stock repurchases as a proxy for the costs of stock option compensation involves so many adjustments that it just isn't worth the time at all. For example, beyond what you discuss, you've also got to differentiate stock repurchases that counter the dilutive affect of stock options vs stock repurchases that are de facto dividends for Intel shareholders. Over the past three years, Intel's weighted average share count has declined by more than 300mm shares. This isn't just a result of some options that are no longer dilutive, either. Common shares outstanding before considering the dilutive affect of options has declined markedly, too, by around 200mm shares. But it doesn't stop there. Because Intel repurchased those shares at a price above book value, that caused book value per share to decline, even though I think it is a benefit to shareholders. Lotsa financial machination involved there. It is a lot easier as well as more accurate just to use the Black-Scholes calculation in the financials.

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