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 : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: pgerassi who wrote (66251)	12/25/2001 12:26:54 PM
From: whortso	Read Replies (2) \| Respond to of 275872

Re: "The claim was always that I was incorrect but, they failed to comprehend that a $0.80 a share loss in net worth matches fairly accurately with the fact that to hold shares outstanding to below the limits set by the shareholders, they have to purchase $1+ billion of them each quarter to offset the option grants. If you remove the net worth losses due to dividend payouts and other such activities that return value to shareholders, the net decline matches quite well to this interpretation." You have a way of making the simple sound so complicated. The claim is that the $1Billion, your number, they spend to purchase shares each year, is not to replace the options exercised, but to provide for the options just granted that same year. They purchase them at fair market value, actually below FMV by the selling of puts, and they grant the same number at the same fair market value. Not all options are exercised because sometimes people leave companies. This could provide Intel a pool of shares to grant at a still higher option price at some time in the future. So instead of losing money or simply breaking even, some companies may actually make money from employee stock options. This is valid in theory but I haven't seen any real numbers to prove it but them again you haven't provided any real numbers from real sources either. As it stands I find this explanation to be quite possible. If you have some real data I'd be glad to see it. The Whort