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: Ali Chen who wrote (145898)	10/23/2001 12:22:07 PM
From: Noel	Read Replies (1) \| Respond to of 186894

Ali, RE: Stock buybacks I agree with your assessment regarding stock buybacks being the cost of doing business but I think that your model may be simplistic. These options were granted several years ago when Intel stock was presumably much lower. How do you account for that? The employees did benefit from the appreciation in stock but then so did the shareholders. I think it is fairer to account for stock options as an expense using Black-Sholes rather than as a stock buyback replacement. Also, the company gets to write off the taxes that the employee paid on appreciated stock which can be significant (believe me on this point :-(). This is how Cisco avoided paying income taxes for years inspite of very high income. Secondly, your assertion is true for the entire tech industry. Have you looked at the numbers for Microsoft, Cisco, Sun, etc.? I doubt they are very different. They may not be buying back as much stock as Intel but the stock dilution due to options still counts. How

To: Ali Chen who wrote (145898)	10/24/2001 5:40:20 PM
From: Robert O	Respond to of 186894

Ali, you never provided the data I asked for in order to make reasonable conclusions about your 'theory.' When you give me what I ask for I will give you what you ask for. Can't get away with guessin' anymore... didn't anyone tell you, it's a whole new ball game! RO P.s. I don't post that much it should be easy for you to find my orginal post on this and get to work. Remember, the burden is on the hypotheizer ... also remember the old saying 'extraordinary claims require extraordinary proof.'