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

To: Petz who wrote (39497)	11/7/1997 9:01:00 PM
From: jackrabbit	Respond to of 186894

>>>> The contingent liability is as I reported, 6.5 million shares at $90 a share ($582,000,000). You are right that Intel did receive money for selling these put warrants ($190M), but its much less than the $582M which they will pay out if the price doesn't recover.<<<<< Petz, If your numbers are right, taking account of the premium, Intel breaks even at $60 per share. If the warrants expire worthless, as is likely, I believe the premium income is tax free to Intel, because companies don;t have to recognize revenue for sales of options on their own securities. Looks like a pretty smart move to me. John

To: Petz who wrote (39497)	11/8/1997 2:02:00 PM
From: Gary Kao	Read Replies (1) \| Respond to of 186894

Do you know WHEN those $90 strike price puts are exercisable? If so, perhaps this offers a sure way to make money. As you know, companies have ways (both ethical and unethical) to influence the stock price. Why couldn't Intel sudden announce "Good news!" just before the puts exercise date occurs to drive up the stock price so that perhaps the puts would expire worthless. The news could be as trivial as "bump in SE Asian CPU shipments" or "great yields" and given the pessimism rampant these days any good news could have a tremendous effect. I don't think such manipulation would bring a risk of lawsuits, as shareholders are NOT irate when the stock price goes up! Gary