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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Burt Masnick who wrote (72842)	9/23/1999 3:38:00 PM
From: tejek	Read Replies (2) \| Respond to of 1572057

RE <<<Ali - Re:Could you kindly point me to a website explaining why Intel's use of BUYBACKS is either illegal, results in erroneous profit reporting or is extensively different in nature from the other companies mentioned above. Didn't see anything about buy backs in the URLs you posted.>>> I am not sure what Ali means in terms of legality of buy backs.....as far as I know, there is nothing illegal. However criticism has been leveled at companies who use the buy back program to give the illusion that they continue to grow quickly. Case in point is intc: for the past 5 years annual revenue growth averaged 24-25%; this year (to date) the YOY increase is 14%....respectable for most companies but not for a tech leader in Nasdaq. However intc's eps increased 30%+ YOY giving the allusion that intc is still growing quickly....a well planned buy back program helps make the YOY increase in eps possible. It was the slowing of revenue growth and not eps growth that caused problems for Dell earlier this year. This in part maybe what Ali is alluding to. ted