Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: bundashus who wrote (66567)	10/14/1998 1:48:00 AM
From: Joe NYC	Read Replies (1) \| Respond to of 186894

bundashus, Don't companies buy back it shares because management thinks that is best investment for its shareholders? If you shift your costs from paying employees salary to paying them stock options, you eventually have to buy stock when the employees redeem their option for stock. The only problem is that you have to buy stock at market prices, while employees pay peanuts, resulting in expenditures like the $1.7 billion you saw this quarter. But hopefully, Intel bought more shares than needed to cover the option liability. So mostly, the stock buy back is not an investment, but the cost of running the business, and if you want to calculate the real earnings, wait for the 10-Q, calculate the cost of stock options this quarter, subtract from the current earnings. Joe