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

To: Ali Chen who wrote (183090)	1/16/2006 4:25:43 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 186894

Ali, AMD was not really profitable in the past years, so the approach of stock options cost relative to profits is stupid. So the "expense" isn't relevant for a company with few profits to speak of? Truly you have a dizzying intellect. Tenchusatsu

To: Ali Chen who wrote (183090)	1/16/2006 6:43:19 PM
From: Lizzie Tudor	Respond to of 186894

just barely even if properly accounted for actual labor expenses. I don't want to get into the middle of this AMD - Intel battle (because for one thing, I think a stronger AMD does BOTH companies good)- but anyway, this notion that options expenses are going to be looked at as *real costs* starting Jan 01 2006 is just false. First of all, most of the tech analysts have been publishing all forecasts and reports with options expensed alongside pro-forma for at least a year. Everybody knows what these things "cost" except maybe the retail investor who is essentially gone from the market (or short). Nobody kids themselves into thinking options are real costs, UNLESS (as may be the case with intel) all the earnings are used in buybacks. But even then, the options bark tends to be worse than the bite- for example Cisco is expensing options now and finally, after the first expensed option quarter- the stock started moving up. Growth companies like Cisco or apple are in a climate where option expenses are virtually ignored, and top line growth is all that matters.