Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: L. Adam Latham who wrote (144152)	9/26/2001 10:23:08 AM
From: Win Smith	Read Replies (1) \| Respond to of 186894

Of course, Intel is probably in better shape on that front than Microsoft. MSFT, being relatively honest on the accounting front, actually published alternative numbers years ago showing a different picture than the popular view from the street if employee option costs were fully accounted for. If you have something that can retrieve old NYT articles, you might check out "Microsoft: a Pioneer in Quality Accounting", by Floyd Norris, 11/16/97, where it was revealed that even in flush times, things could look pretty lean, depending on your accounting "rules". Microsoft used to work hard at writing tons of puts to lay off part of the employee options costs, but I think that may have bit them big time when the techs crashed.

To: L. Adam Latham who wrote (144152)	9/26/2001 4:14:14 PM
From: brushwud	Read Replies (1) \| Respond to of 186894

Yes, the Stock Purchase Plan and Stop Option plans add to the total share outstanding as the shares are sold by the employee. I seriously doubt that many Intel employee stock options are being exercised these days! (Except by those that accept a severance package.) Also, those shares add to total shares outstanding whether the employees sell them, hold them, or give them away. This is the way of life for tech companies who use options to attract highly-qualified employees - they all have to burn cash to buy back excess stock generated by these plans. An utterly false statement. Most tech companies create new shares for their ESPP and stock option plans. They do not go into the market and buy shares. Those plans become a source of financing further growth.