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

To: pgerassi who wrote (172054)	12/2/2002 8:04:48 AM
From: Arthur Radley	Read Replies (1) \| Respond to of 186894

Pre-market looking great this morning..up about a $1.00. Will it hold going into Thursday meeting?

To: pgerassi who wrote (172054)	12/2/2002 9:03:14 AM
From: GVTucker	Read Replies (3) \| Respond to of 186894

pgerassi, there's a lot of misinformation in your post. Fact, Intel is buying their stock at a average rate of $1 billion/quarter. Fact, that would buy about 50 million shares of their stock. Fact, the amount of Intel stock over the last few quarters has not changed more than a few million shares despite billions in buy backs. First two statements are indeed facts. The last one is not. Look at diluted shares outstanding for the fiscal year end of the past 5 years: 1997: 7,180mm 1998: 7,036mm 1999: 6,940mm 2000: 6,986mm 2001: 6,879mm For 2002, the quarterly numbers are: Q1: 6,861mm Q2: 6,803mm Q3: 6,712mm Over the past 5.75 years, the diluted shares outstanding at Intel has shrunk by 468mm shares. That averages out to more than 20mm shares per quarter. While a piece of that is undoubtedly in the money options that ended up going out of the money, there also was real share shrinkage at Intel. Fact, they report revenue from options exercised to the tune of $200 million or so each quarter. Fiction. The money coming in from option exercises is added to paid in capital on the balance sheet. It does not appear on the income statement at all. Yes, employee stock options have a cost, and in my opinion that cost should be expensed. But that has absolutely nothing to do with the fiction that you're talking about here. Given that the revenue from those options being exercised shows up as Other Income/Revenue in the quarterly earnings reports, the costs should show up as Employee Expenses on those same quarterly earnings reports. The "revenue" (it really isn't revenue, of course) does NOT show up in Other Income/Revenue. If it did, that would be a massive fraud. Could you provide me with a shred of evidence that supports this statement? Because if it is true, there's a lot of money to be made in shorting Intel. Of course, it isn't true at all. If Intel did allow their stock to dilute, then those shares being sold to option holders would show up as capital or retained earnings. The total book value would go up but, in most cases, the per share book value would go down. And it still would be the equivalent of a loss to the original shareholders. And the shares outstanding would go up sharply. Which is not occuring. Now THAT is a correct statement. About time. Please, I really would love to see some evidence, any evidence, of fraud at Intel. Thus far you have just presented an incorrect understanding of accounting and no evidence at all.