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: Proud_Infidel who wrote (182412)	10/19/2005 9:28:21 AM
From: robert b furman	Read Replies (1) \| Respond to of 186894

Hi Brian, Doing that link to me just so I get PO'd early in the morning? Thanks Buddy.GG If the markets reaction to Intel AH is an indication - guess I'll keep my money in small caps. Big caps at recordlike revenue aren't doing too well. Bob

To: Proud_Infidel who wrote (182412)	10/21/2005 12:46:47 AM
From: Amy J	Read Replies (1) \| Respond to of 186894

Brian, stock options are a great retention tool and am a huge advocate of the use of them, however, right now they are not working when you have this: finance.yahoo.com Because the labor market is tight at the higher-end, other firms are enticing Intel executives/employees and Intel candidates with more hard cash, while Intel continues to throw options at people which is no longer working, thus it's a waste. So, Intel's board needs to do an about face on options, reduce their issuance, while finding other more effective means for this phase. Intel has two issues right now that are specific to a tighter global labor market at the mid to high levels - retention and hiring. People increasingly are turning down jobs at Intel because inflationary increases make them more desirous of guaranteed cash than options. This problem can be fixed by a rise in interest rates (so as to eventually reduce inflationary pressures that eat up cash) so Greenspan needs to keep raising rates. Meanwhile, the retention problem can be fixed through an issuance of dividends (provided they also reduce options since no one currently appreciates them enough.) A cash-dividend gives employees cash that counters inflationary pressures and thus reduces the appeal of outside offers. So at this point, I would say cash-dividends are certainly better as a retention tool than throwing away options onto people that aren't appreciating them enough. A dividend would also appease Wall Street - one of the analysts brought this up during the conf call - and while he prefaced his comment inappropriately so, his message on the dividends is accurate (that WS would treat Intc more favorably) - in the face of tepid stock, if options are no longer appreciated enough don't waste them. Regards, Amy J