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

To: d[-_-]b who wrote (36151)	8/17/1998 1:21:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1570548

Re: "Need I remind you that both AMD and NSM use this "deceptive" technique, and I might add they have no bottom line expense as no would like to exercise worthless options. So it follows they would have trouble finding and retaining quality employees and in the end their products will suffer, or is happy employees a bad thing. Heck, they should stop giving vacation time, what an expense." I think Ali's point is (and I'm sure Ali will correct me if I am wrong) that Intel continues to have to buy back shares on the open market to keep the dilution from affecting EPS. This is what Ali considers a "loss", this outflow of cash which is in his opinion, employee compensation that should count against the bottom line. As you point out, nobody is exercising AMD options because of the terrible stock performance (Jerry excepted of course because of his special options pricing <ggg>). If AMD were to perform well, exercised options may well dilute their earnings(HA!), and force AMD to prop up the EPS(HA!) just like Intel does, by buying back shares. Seeing as the chances of AMD ever performing well are near zero (IMHO) this issue is moot in the cause of AMD. EP