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Technology Stocks : Intel Corporation (INTC)
INTC 36.91-1.1%Dec 31 3:59 PM EST

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To: Lee Penick who wrote (39097)11/6/1997 8:43:00 AM
From: Charles Skeen  Read Replies (1) of 186894
 
Lee, RE: <<<Intel used this method to incentivice employees. . >>>

Yes, but managing the stock price down would hardly accomplish this.

RE: <<<are these buy backs made with "earnings">>>

Well, they are made with cash. The buy backs would reduce cash on the LHS of the balance sheet and shareholder's equity on the RHS. No effect on Total Earnings (except to reduce future return from short term investments). Earnings per share should increase, but this is offset as new stock options are issued and employees exercise them.

RE: <<<Motivates employees, but very expensive. Intel has massive brain power at HQ, . . . . These are Phd, etc in very valuable fields. >>>

With 12,000 employees in R & D (according to postings on this thread), it would require a lot of motivation. One wonders about productivity where there are so many "brain powered" employees in one organization -- must be very frustrating for some at times -- and what happens if the stock price does not continue to uptrend and employees become de-motivated?

JMO, Charlie. (not an accountant or up on the latest stock option rules)
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