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

To: GVTucker who wrote (178121)	5/26/2004 9:46:04 AM
From: rkral	Respond to of 186894

GVTucker, re "Using stock repurchases as a proxy for the costs of stock option compensation involves so many adjustments that it just isn't worth the time at all. ... It is a lot easier as well as more accurate just to use the Black-Scholes calculation in the financials." Well said, Ron

To: GVTucker who wrote (178121)	5/26/2004 12:09:02 PM
From: Ali Chen	Read Replies (1) \| Respond to of 186894

"It is a lot easier as well as more accurate just to use the Black-Scholes calculation in the financials." This is nonsense. A fuzzy statistical forward-looking estimate cannot be more accurate than on-going activity of buying back shares at market value to give them away to employees exercising their options. A company knows exactly when and how much it paid for those commons, and nothing could be easier and more accurate to expense that part of stock repurchases. I don't disagree that not all stock re-purchases at Intel went directly into employee pockets, there might be some fraction used for other purposes. However, nobody has presented here a case that the other portion is of any significant size, only FUD and hand-waiving on your side. Given no evidence to the contrary, it is safer to assume that most fraction of Intel stock buyback was in effect a labor compensation. - Ali