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

To: AK2004 who wrote (161369)	3/7/2002 2:42:53 PM
From: Dave	Read Replies (1) \| Respond to of 186894

Albert, [T]he article was addressing the issue of stock options and their effect on stock valuation. There are many debates over the use of "stock option" as a form of compensation and how that should be reflected in a company's Income Statement. If implemented many tech company's earnings will suffer as a result. I realize that many things from the article are just as applicable to amd but you have to realize that the fact that it pushed amd into negative vs intel's positive does not really make any difference One point to clarify, "pro-forma" earnings does not exclude "stock options". In fact, even GAAP earnings do not include the "cost" of stock options. There have been many arguments concerning "pro-forma" numbers, esp. when companies have "one-time" charges quarter after quarter (BTW, I am not casting stones in either the house of AMD or the house of Intel). Sure, some costs should be excluded, but one has to wonder what is incorporated within all these "writeoffs" of these companies. Most likely, in the future, there will be a "line by line" itemization of each writeoff.