Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: carl a. mehr who wrote (174222)	4/25/2003 9:40:03 AM
From: GVTucker	Respond to of 186894

Yeah, expensing the stock options will put an "honest" price on the price of Intel stock. A 50% drop would be proper and Amy J. would be "able to shop till she drops!" Not necessarily. First of all, note that Intel has disclosed the Black-Scholes option expense in the Notes on a regular basis. So it is quite possible that if Intel starts to expense stock options, that by itself won't cause the stock to drop because the market has already discounted the stock option expense. A couple of friends in the academic world have begun research on the performance of companies that began to expense options on the income statement. Their initial results have indicated that these companies outperform both their industry peers and the market. The data is preliminary and probably won't be published for another year, but the initial results indicate that a big piece of the Sturm und Drang in Silicon Valley and a lot of the rest of the world is much adoo about nothing, at least as far as market prices are concerned.