SI
SI
discoversearch

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: Ali Chen who wrote (183085)1/16/2006 3:41:39 PM
From: TimF  Read Replies (1) | Respond to of 186894
 
So, given current trend, expect in 5 years x 19%/year = 95% of profits, give or take

If your just applying the 19% going forward than you are saying that just under 1 year in profit from the next 5 will be used on options expenses. If you are arguing that the options expenses will increase 19% per year for 5 years to reach 95% I don't see any reason to expect such strong steady growth. If you are trying to imply something else and I just missed it could you please explain it to me?

Tim



To: Ali Chen who wrote (183085)1/16/2006 4:22:19 PM
From: Tenchusatsu  Respond to of 186894
 
Ali, I am not sure how it really is meant to work, but I assume the next year "option expenses" for new options will add to the current number. So, given current trend, expect in 5 years x 19%/year = 95% of profits, give or take,
which matches my estimations based on stock buyback.


Comparing five years of options to one year of profits? I think you should have stopped with "I am not sure how it really is meant to work."

Why not apply your "fuzzy math" to AMD and see how high you can make that percentage go?

Tenchusatsu