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Technology Stocks : Intel Corporation (INTC)
INTC 41.81+3.2%3:18 PM EST

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To: willowy who wrote (180861)4/20/2005 1:15:58 PM
From: Ali Chen  Read Replies (1) of 186894
 
Willowy, "Intel is a company, which figured out how to make tons of money by producing chips of different sort. There are other companies, which are still trying to figure it out."

You are missing the point.
Yes, there are few companies who figured out how to hide
labor compensation costs out of "generally acceptable"
earnings reports. It is called "employee stock options
plans". With excessive use of this plan a company has to
buy back it's own stock at open market to fulfill
their obligations to employees who elected to exercise
options, but this is not accounted as expense.
I just merely pointed out that _effectively_
the Intel profit is mostly on paper when you look at bigger
picture and consider the overall shareholder's equity.
You must be missing all recent debates about expensing
stock options with Intel furiously opposing this.

Apparently, the whole scheme is designed to make mass
investors over-exited and continue to pour their money
into this stock maintaining and fueling the scheme in return.
Many people consider this scheme as deceptive. I think
this is one of the reasons why this stock is going nowhere
in the last few years despite of excellent paper records.

Take care,

- Ali
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