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

To: Ali Chen who wrote (145958)	10/24/2001 3:29:16 PM
From: Dave	Respond to of 186894

Ali, Couple of comments... My point...is that the current reporting of major financial performance parameters...is grossly misrepresented by not including the buyback expenses Well, while these numbers are not in the Income Statement, these numbers are posted in the Statement of Cash Flows, under investing activities.... When the buybacks are a necessity for a company and are done at a regular rate of $1BILLION/Q like Intel does, which currently exceeds their operating profit by factor of 2.5, this misrepresentation turns into a fraudulent scheme, to lure uneducated investors into bigger investing into underperforming company There are differences between "Accounting Profits" and the "Statement of Cash Flows". For example, when corporations purchase inventory, those "expenses" do not immediately show up on the income statement. The "expense" is recognized upon the sale of the inventory, under cost of goods sold. For example, let's say a company reported $100 in profit for the Quarter. Assuming no issuance, or retirement, of debt and no other sources of cash, does that mean that the company's cash position increased by $100? not necessarily This might seem odd, but companies that report quarterly losses may still be generating cash from their operating activities... Again, for any company, one should look @ the company's reported profit, or loss, and compare that with their Cash Flow from Operations...