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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Bill Jackson who wrote (34552)	7/15/1998 7:52:00 PM
From: Ali Chen	Read Replies (1) \| Respond to of 1571702

Bill, <..that money might just as well have been burnt.> This appears to be not completely true. Look at insider selling/acquiring of shares at Intel: stocksmart.com It shows that 90% of the acquired options were disposed. In the 1Q there were 3.1M shares disposed by top management alone. They DO NOT HOLD THEM!!! It means that they pocketed out at least $200M in cash that is not directly in the "official" books. I am much sure that the middle management and engineers are doing the same since they usually are more in need for "pocket" money - mortgage, car loans, kids education... As I saw, Intel's total buy-back this year is already 59M shares. Since the total number of shares is the same, it is apparent that all these shares were granted back as options. At $75 on average, it is about $4.5B of expenses that went eventually into the pockets of Intel employees as a compensation for their labor. These money are not just burnt out, they are spent in hidden labor compensation. If the current accounting system has a flaw, it does not matter, there must be still a balance, these money are still a real money. With the rate of $3B/Q money drain, should we ask Stoky to estimate how long it can last?