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

To: pgerassi who wrote (172074)	12/2/2002 2:53:42 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

You fail to see the big picture. If shares repurchased yields a lower book value, why do it? The only explaination is to cover something else up. Wrong. That is only true if the stock is truly "worth" less than book value. If it is "worth" more than book value, then a repurchase might lessen book value but enhance shareholder value. There are a good many stocks whose market value should be more than book value. Things like brand value, which Intel does indeed have, would make a company worth more than book value would indicate. Remember the original argument is that Intel is losing money contrary to the published reports. Counting all the reductions in equity, Intel has lost $13 billion over the last few years. This is mostly due to two things, overpaying for acquisitions and off P&L employee compensation. And of these, options are the true reason that Intel has lost $13 billion without needing to claim any loss. I showed you in my previous post that the above statement is false. If you continue to repeat the mistake I'll have to assume that you aren't mistaken, but rather that you are intentionally trying to deceive people. Since this is allowed by GAAP does not mean it is right! How true. And that is why looking at the book value of equity can be deceiving, contrary to what you maintain.

To: pgerassi who wrote (172074)	12/2/2002 3:55:00 PM
From: fingolfen	Read Replies (1) \| Respond to of 186894

You fail to see the big picture. If shares repurchased yields a lower book value, why do it? The only explaination is to cover something else up. Then why is outstanding shares going down less than the amount repurchased? Yes, the difference is the options being exercised yielding new stock outstanding. And this doesn't gain as much to book value. Thus the net effect is the cost of those options (of course assuming that the cumulative shares exercised matches the cumulative shares bought which has been historically accurate for Intel) are removed from book value. And this number is the same as employee compensation that is off the P&L, but not the balance sheet. Remember the original argument is that Intel is losing money contrary to the published reports. Counting all the reductions in equity, Intel has lost $13 billion over the last few years. This is mostly due to two things, overpaying for acquisitions and off P&L employee compensation. And of these, options are the true reason that Intel has lost $13 billion without needing to claim any loss. Since this is allowed by GAAP does not mean it is right! Many changes are done to GAAP to make the transactions more overt (obvious to the average Joe or Jane). If changes were made to GAAP that the reported P&L number must match the per share change in Stockholder's Equity over the period, many of these dodges would be uncovered. Legitimate alterations can be easily explained. I'm sorry, but comments like "failing to see the big picture" and "remember the original argument" do nothing to support your case. You're sounding more and more like an apologist with an axe to grind than someone with a legitimate point. The proper scientific method is: hypothesis - test - collect data - analyze data - accept or reject hypothesis. NOT: form conclusion that fits your world view - hunt for / manufacture data to support it - restate conclusion - ignore problems with data - restate conclusion - ignore further problems with data - restate conclusion with grandiose patriotic tie in.

To: pgerassi who wrote (172074)	12/3/2002 5:00:31 PM
From: Road Walker	Read Replies (2) \| Respond to of 186894

A little fuel on the fire: Intel doles options to all employees By Chris Kraeuter, CBS.MarketWatch.com Last Update: 4:08 PM ET Dec. 3, 2002 SANTA CLARA, Calif. (CBS.MW) -- Intel granted almost all of its employees, including several top executives, stock options last week. "This was intended as a special grant to 'incent' and retain Intel employees across the board," said spokesman Bill Calder, adding that the company's directors, chairman, chief executive and president did not receive any options. Calder declined to provide specifics about how many total options were granted to employees, who numbered 81,700 at the end of September. For other top executives receiving options, including the chief financial officer, Intel provided details on Nov. 27 in separate Form 4 filings with the SEC, which indicate changes in equity ownership by directors, officers or owners of more than 10 percent of a certain class of stock. Intel (INTC: news, chart, profile) shares slid 3.5 percent Tuesday to $20.31 as part of a broad market decline. So far this year, according to Intel's most recent quarterly report, filed on Nov. 6, the company had granted 5.2 percent of its total options to the company's five top executives. Those same executives only received 0.8 percent of total options in 2001 and 0.4 percent in 2000. In its 10-Q filing, Intel said the higher percentage stemmed from additional grants to top executives "in recognition of their future potential in leading the corporation." Also, Intel said it intended to reduce the overall percentage of options granted to top executives by making additional companywide grants during the final three months of 2002. "The grants were meant to provide additional long-term incentives for employees in the current market," said Calder on Tuesday. CFO Andy Bryant was granted options for 528,852 shares at an exercise price of $20.23 each. Options will begin to vest in installments for 328,000 shares beginning one year from now. The remainder won't vest until 2007. During the first nine months of this year, Bryant, also a director, was granted options to buy 804,000 shares at prices around $30 each. He now owns options on 2.76 million shares of Intel stock. Leslie Vadasz, executive vice president and director, received options on 313,825 shares at $20.23 each. Vadasz leads Intel Capital, the company's funding and investment group. During the first nine months of this year, he received options on 92,000 shares at a price of $29.33 each. He now owns options on 2.1 million shares. Michael Splinter, executive vice president in charge of global sales, received options on 528,852 shares at an exercise price of $20.23 each. He now owns options on 3.77 million shares. Sean Maloney, executive vice president of Intel's communications group, received options for 529,707 shares at $20.23 each. He owns options representing 2.7 million shares. Senior Vice President F. Thomas Dunlap received options on 259,568 shares at $20.23 each. He is Intel's general counsel and secretary. Two other senior vice presidents also filed having received options on about 260,000 shares each, and a vice president received options on 211,000 shares. Chris Kraeuter is a reporter for CBS.MarketWatch.com in San Francisco.