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

To: Dave who wrote (151296)	12/6/2001 11:09:42 AM
From: wanna_bmw	Respond to of 186894

Dave, Re: "Where are you getting the 800M loss for Intel?" Ali claims that Intel should count stock repurchasing as an operational expense, thus giving them an extra $1 Billion last quarter to be subtracted from net income. Intel's net income last quarter was $106 million, but since Ali can't subtract, he came up with $800 million after subtracting the $1 Billion. wbmw

To: Dave who wrote (151296)	12/6/2001 2:31:11 PM
From: Ali Chen	Respond to of 186894

Dave, "Where are you getting the 800M loss for Intel?" see Wanda's explanation. Of course this is grossly inaccurate, you need to do it on pre-tax basis, minus proceeds from sales of options to employees, adjust for actual stock dilution, etc. I admit I never undertook any effort to do more precise calculations, but subtracting a $1 Billion of cash every quarter gives you a good idea about the problem. No matter how you slice it between accounting formalities, the net is plain visible: in the past 4 quarters the net worth of Intel was declining at the rate in excess of $1B/Q.(in 1999 the net worth was growing at $4B - $6B per quarter!!!). Draw your own conclusions. - Ali