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

To: maui_dude who wrote (169133)	8/8/2002 7:25:53 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Maui D., Intel's options stance is the lead article on the front page of the Marketplace section of this morning's Wall Street Journal, titled "Contrary Intel Won't Expense Options". A decent article and also an interview with Grove & Bryant follows. It appears that Intel may be taking the lead in this debate (on the side that will lose). Funny, Grove says in the interview that he was on the side of expensing options after a dinner with W. Buffett. But after long debates with Bryant, he changed his mind. They also talk about limiting stock dilution to 2% a year. That doesn't sound too bad if Intel is to be a growth company in the future; if it turns into a "mature" company, from a shareholders perspective, that's a lot of the company to give away, year after year. Both sides in this debate make good points. I suspect there is a middle ground that makes sense, but I don't think we will get there, with current sentiment. John

To: maui_dude who wrote (169133)	8/8/2002 8:08:38 AM
From: Dan3	Read Replies (2) \| Respond to of 186894

Re: Intel: In 2001, the company estimated that expensing options would have shrunk Intel's already-meager earnings that year from $1.3 billion to just $254 million. Sounds like Grove and Bryant are in 100% agreement with Ali Chen (and a number of others, including me). Expensing options at the time they are granted can be problematic (what if they aren't exercised?). But there is no reason in the world not to account for the cost of options when (if) they are exercised.