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

To: Dan3 who wrote (151268)	12/6/2001 12:21:01 AM
From: wanna_bmw	Read Replies (3) \| Respond to of 186894

Dan, Re: "They paid $3 Billion dollars and there are now 12 Million more shares outstanding!" I'll forgive your ignorance, since you obviously don't know how stock buy-back works. "Common stock" represents the total number of shares outstanding to everyone in the world. When Intel buys back shares, this number neither decreases nor increases. Shares can be voted on to be dissolved, but it doesn't look like Intel did that this year so far. In fact, as you noticed, they issued 12M more shares. When a company buys back shares, they don't necessarily dissolve each one of them. Many go towards employee stock options, stock purchase programs, and some are simply held by the company until a later date. If you look at this link (and you really should read it, since it has many interesting facts): edgar-online.com You'll see the following. "Stock Repurchase Program During the first nine months of 2001, the company repurchased 98.4 million shares of common stock under the company's authorized repurchase program at a cost of $3.0 billion. In September 2001, the board of directors increased the number of shares available under the repurchase program by 300 million shares. With this increase, a total of 328 million shares remained available under the repurchase authorization as of September 29, 2001." 98.4M shares at a cost of $3.0 billion means that Intel spent, on average, $30.48 per share. And guess what - the share price is now $4 more than that now. :-) wbmw