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

To: AK2004 who wrote (183116)	1/18/2006 1:10:07 AM
From: The Duke of URL©	Read Replies (3) \| Respond to of 186894

You guys are going around in circles. The real problem is how to conceptualize stock options in the first place. The amount per company really should be compared to Gross revenue, because they are really a cost of sales. IF you can decide how to value them, then you can sort of look at their relative importance in each company. Truth be known, the old way to treat stock options was the best. The new way is going to result in UNDERVALUATION of a company. In other words, find a company with lots of stock option "expense" an if other things like income stream are there, the company will be a buy because despite what all you guys are screaming about, you will find in the long run, they are, when the dust settles, not an real expense, after all. ::))))

To: AK2004 who wrote (183116)	1/18/2006 3:38:51 AM
From: Tenchusatsu	Read Replies (1) \| Respond to of 186894

AK, Option grants should be measured against stock performance that is against expected earnings and earnings growth or, if you will, risk adjusted present value of future distributable earnings. Unfortunately for you, options aren't measured against that. Instead, they're measured against the actual earnings of the company at the time of grant, not the "expected earnings" and not the "earnings growth." And that is done by counting it as an "expense," even though like Duke said, this isn't a real expense. So taking that method of expensing options, AMD looks a lot worse than Intel. If you want to argue against that method, be my guest. You'll just be agreeing with what I've been saying all along. Tenchusatsu