"Is Intel repurchasing shares now? Does any have access to this info? If they are buying at $75 instead of 100, that could save $250,000,000 if a billion dollar repurchase were necessary."
Hi Lee,
The answer to your question: Intel is authorized to repurchase shares now. The current authorization (by the board) was for 110 million shares. As of Jan 1, 20.6 million shares remained available under this repurchase authorization. In 1996, the company repurchased16.8 million shares for $1.3 billion.
Your conspiracy theory is interesting, but consider this. We read a lot about Intel's agressive capital spending program. In the first 9 months of this year they spent $2.9 billion on capital improvements (fabs).
Know how this compares to what they spent on buying their own stock over the same period of time? They spent over 80% as much, $2.3 billion buying their stock to satisify the employee stock options!
Know how many shares have been retired? The number of outstanding shares has INCREASED by about 20 million!
This goes on year after year (I know Intel is not the only one doing this) and this year so far has amounted to over 45% of TOTAL NET INCOME! Andy Grove says he doesn't understand the P in the market's evaluation of Intel's P/E.
Well, Mr. Grove, in light of the above, I don't exactly understand the E.
Best Trading, X |
