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

To: ptanner who wrote (66423)	12/28/2001 12:47:58 PM
From: pgerassi	Respond to of 275872

Dear Ptanner: Look at the earnings report for Q3. They bought 34 million shares and only reduced shares outstanding by 3 million. That means that 31 million shares were given to employees exercising stock options in Q3 alone. Now some of that number were given to officers of the company in outright grants in certain targets were met and net no profits for the exercise of the options. If the options were held for 3-5 years on average, the rest of the shares got somewhere between 6 and 9 dollars a share in base option cost making all of them be exercised. The current authorized share limit should be in the prospectus somewhere. It is for AMD. This limit is for maximum diluted shares not, shares outstanding. Given the 31M shares a quarter and assume that the average life is 3 years, about 370 million shares exist as options not currently exercised. Thus, the limit is above 7.25 billion shares. Pete