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

To: Robert O who wrote (173441)	3/11/2003 2:24:48 PM
From: The Duke of URL©	Read Replies (1) \| Respond to of 186894

Buffett, whose name is spelled Buffett not Buffet, is a genius, a hero, the best investor that ever lived and wrong on the issue of expensing stock options. The workman example he gives proves the point. Options do not affect cash flow in the short term. The affect earnings on a pershare basis. In the short run, HAVE NOTHING TO DO WITH CASH. His example Gives the cash first, and is more properly an argument against proforma income statements, not stock options. That is why they have been given the same consistent accounting treatment for the last 75 years. DO NOT CONFUSE HIDDEN THEFT WITH PROPER ACCOUNTING FOR EARNINGS AND PROFITS. In fact, at the time of the grant, nothing is given in cash. As long as fully diluted shares are required to be stated, the earnings per share IMMEDEATLY goes down. What is required is disclosure of who got what on a key employee basis at least the top 5%. It is the board of directors responsiblity not to over pay. Subtracting stock options from earnings is a double deduction and will be in effect deducted from earnings once again if diluted e/p is considered.