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Technology Stocks : Intel Corporation (INTC)
INTC 36.26+0.5%Dec 18 3:59 PM EST

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To: ChipGeek who wrote (180916)4/28/2005 10:14:05 AM
From: willcousa  Read Replies (2) of 186894
 
> Paranoia?

I am afraid that I am not being understood. My bad. If an option grant goes in the tank because the stock hits a down cycle the option loses its' incentive value. So what BoD's do in such a case is to cancel the old options and replace them with new ones at the current market price. Let's say those options go further into the tank. Then another replacement takes place. Eventually the options find a price at grant which is at or near the bottom. There is nothing sinister about this in my mind. But it is really tough on shareholders when a stock has wide swings. I have no idea whether intel ever replaces option grants. But most companies do. Will
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