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

To: Stoctrash who wrote (168183)	7/14/2002 3:17:12 PM
From: The Duke of URL©	Read Replies (2) \| Respond to of 186894

not much both coca cola and intel are pretty reasonable on stock options, BUT expensing a stock option is not the answer, for the reality is STOCK OPTIONS ARE NOT A CASH EXPENSE. They dilute the outstanding stock but they are paid for but outside stockholders, not the company. It will reduce the e/p of any company that does this, but most sophisticated investors know this already and have made a mental note. It is the yuppies who run the mutual funds, the congress and a few uninformed posters who this issue remains a continual matter of unsophisticated interest. Don't you agree? :))

To: Stoctrash who wrote (168183)	7/14/2002 8:00:23 PM
From: L. Adam Latham	Respond to of 186894

Alan: I would suspect that a large portion of outstanding INTC stock options are currently worthless. How does expensing them work if they're under water? A credit? ;-) Adam

To: Stoctrash who wrote (168183)	7/15/2002 1:27:11 AM
From: Tushar Patel	Read Replies (3) \| Respond to of 186894

The current Barrons (Jul 15 2002) has a list of 20 companies with the highest differences between reported earnings and "Core Earnings" computed by S&P. The "core earnings" exclude pension gains, insurance & litigation gains, unrealized gains from hedging etc. They also include restructuring charges from ongoing operations, some R&D charges that have been excluded from reported earnings and the cost of stock options grant. Intel is number 14 on this list with reported earnings of 1291 million vs core earnings of 334 million, a difference of 956 million. Numbers 1,2,3 are DuPont (4.3B vs. -48m, diff of 4.3B), IBM(7.7B vs 4.8B, diff of 2.8B) and Microsoft (7.7B vs. 5.4B, diff of 2.2B)