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

To: wanna_bmw who wrote (151280)	12/6/2001 12:35:20 AM
From: Elmer	Read Replies (1) \| Respond to of 186894

Wanna you're a generous man. You dig up facts and take time to explain things to a fool who you know will simply turn around and lie to you again. I like and respect you and I hope you won't take this the wrong way, but just who is being the fool? EP

To: wanna_bmw who wrote (151280)	12/6/2001 12:41:56 AM
From: The Duke of URL©	Read Replies (1) \| Respond to of 186894

"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. Well, sort of. Common stock outstanding is reduced by the number of shares purchased by the company. The stock so purchased becomes "treasury" stock. It is authorized but is no longer "issued". When stock bonuses, or options to buy stock or stock used for acquisitions is needed, it comes from the treasury stock. There must be enough authorized but unissued treasury stock to do this. If Intel bought back 94MM and there are now 12MM more, then in broad brush, Intel issued 106MM new shares. It is to be noted that under the new dilution rules, even if a stock option is issued, but the stock still has not, the company has to report the amount of stock as if it were already issued. Ie, it must treat the stock as outstanding (fully diluted) even if has not been issued and is still technically treasury stock. There are significant tax reasons for using stock in this manner. This may be perhaps more than you wished to know. :))

To: wanna_bmw who wrote (151280)	12/6/2001 12:56:29 AM
From: Dan3	Respond to of 186894

Re: I'll forgive your ignorance, since you obviously don't know how stock buy-back works Wrong again. Treasury stock is not part of "weighted average shares outstanding." Intel sold more shares than it bought during the period in which it spent just over $3 Billion buying. Between whatever employee compensation expenses may or may not have been hidden in that $3 Billion, their $6 Billion increase in "goodwill" this past year, and their delayed recognition of capital costs through a $5 Billion increase in undepreciated PP&E in the same period, Intel has fiddled its accounting statements to the tune of $14 Billion dollars. That's a lot of fiddling, even for a company as large and rich as Intel. It's been a tough year for all the semis. AMD incurred and reported a small loss while making big market share gains. Intel incurred a much larger loss, and a market share loss, but buried the financial loss in their accounting statements - a spectre that will come back and haunt it, sooner or later.