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


To: hueyone who wrote (173389)3/7/2003 8:04:51 PM
From: Road Walker  Read Replies (1) | Respond to of 186894
 
huey,

Try to ignore Ali, he doesn't agree with anyone, except himself (occasionally). Thanks for the analysis.

I tend to agree with Carl, the Intel board has figured a way to pay the top ~20 executives way too much money, through options & bonus & salary & retirement. Maybe the rank and file are getting too many options, we are no longer in the boom days, they are not inventing the wheel (they are refining the wheel).

Anyone feel free to correct this impression if you think it's wrong. But it seems like the Intel option program almost caps the earnings. If we have a business upgrade cycle, and a subsequent GM $ and stock price increase, the options will pay off big time, and Intel will have to spend an increasing amount of earnings dollars to buy back shares. Effectively the stock price won't go down a lot if the gross earning decrease, because the options expense will be lower. But if the gross earnings increase, the stock price increase will be limited, because the outstanding options will require an increasing percent of earnings dollars.

Probably missing something.

John