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

To: Dan3 who wrote (169146)	8/8/2002 9:17:12 AM
From: Road Walker	Respond to of 186894

Dan, re: I must have missed where a cost is taken for share dilution in the quarterly earnings statements that calculate profit and loss for the quarter. Care to provide a link? You probably haven't noticed that most folks use EPS as a valuation method. More shares, granted through options, less EPS. Too complicated? John

To: Dan3 who wrote (169146)	8/8/2002 9:42:00 AM
From: Ted The Technician	Respond to of 186894

Re: Except they are then expensed twice, as a cost and as dilution. Dilution should not be considered as an "expense" (although it is a cost to shareholders). Dilution doesn't impact net income whereas option grant expensing would. If options expire unexercised, there should be an anti-dilutive effect. I believe that options should be expensed as it is truly a cost to the company and shareholders. It would bring shareholder awareness to issues like Intel's drop in shareholder equity over the past year. I had thought that it was increasing since it was "making money" last year. The CEO must be trying to hide this fact by refusing to expense options.