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Technology Stocks : Intel Corporation (INTC)
INTC 47.84+1.5%3:10 PM EST

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To: H.P. Yee who wrote (8565)1/15/1997 10:55:00 PM
From: Fred Fahmy   of 186894
 
H.P.,

<<The $1000 to each empolyee has (will?) take about $0.05 out of EPS, Since most (all?) INTC empolyees owns INTC stocks (or options), I think it would be better to keep the $0.05 in the EPS and let it boost intc's stock value.>>

I have to disagree. The best way to keep a successful company successful is to have loyal, motivated employees. Nothing makes people more loyal and motivated then generous gestures like this. Most employees may be stock holders but some are not. The employees of Intel deserve something extra for all the work they have done. They are the ones responsible for the profits we now enjoy. The $.05 is insignificant when compared to 1997 full year earnings of somewhere around $9.00. Do you really think that by the end of the year, the stock will be trading even 1/8 less due to the fact that they could have shown $.05 more earnings for the year. I don't think so.

FF
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