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

To: Tenchusatsu who wrote (172874)	2/6/2003 3:17:48 PM
From: carl a. mehr	Respond to of 186894

I say: There is no substitute for honesty! Of course there is also the option to curtail the stock give-away program to the Inner Circle...humble carl

To: Tenchusatsu who wrote (172874)	2/6/2003 3:37:30 PM
From: GVTucker	Read Replies (5) \| Respond to of 186894

Tenchusatsu, RE: The entire Nasdaq might fall by 50% if the cost of the "stock give-away" program is expensed. Yes, carl wasn't aware of the options program before now. And kudos to carl for admitting his mistake and trying to correct it. I think he's going a bit overboard personally, but hey, he owns the company, he's entitled. But the majority of Intel shares are most likely owned by people that are fully aware of the options program at Intel. Barclays owns 247mm shares. Fidelity owns 179mm shares. Add up all the carls in the world and they won't come close to either stake. And I guarantee that the money managers at both firms are fully aware of Intel's compensation policy. It is a myth held jointly by many Silicon Valley execs and some doom and gloomers that if a rule of GAAP was changed that all of a sudden stocks would drop. The market isn't that stupid, even counting the absurd valuations of 1999 and 2000. It is silly to have a policy that produces inaccurate financial statements. Why should I have to pore through the proxy statement to find a compensation cost? No reason. Stock options should be expensed because financial statements are designed to provide an accurate picture of the financial status of a company. Changing the rules won't all of a sudden make a stock more expensive, because it won't change the operations of a company. GAAP rules don't run a company. Management does. GAAP just takes a picture of what they're doing. And we ought to put that picture in as good a focus as possible.