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Intel Corporation Message Board

  • redfrecknj redfrecknj Dec 21, 2002 11:51 AM Flag

    BARRON'S WARNING

    THINK ABOUT WHAT THE EXECS ARE DOING.

    Please don�t let them take anymore of your hard-earned money!

    Barron�s December 23, 2002

    A tally was done of insider buys and sells in top ten NASDAQ companies including Microsoft, Dell, Intel, Intuit, Cisco, Qualcomm,Maxim, Oracle- all with a collective market cap of $828 billion.

    In the past 6 months in the top ten there were 137 sellers against 3 buyers- that�s right- 3 buyers. The buyers purchased 92,000 shares and the sellers dumped 47.6 million shares.

    A tally in the period from October thru December during this last rally, only a single buyer of 50,000 shares and no fewer then
    81 sellers who took advantage of the spike in prices to dump
    19.4 million shares. That�s a ration of 388 sellers to one buyer.

    Please don�t let them take anymore of your hard-earned money!

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    • you shouldn't be giving advice

    • Hey Gordon you should try being long during winter through spring months instead of the summer you dumbshit LOL

      You crack me up. You were a bull all through the summer but I guess selling at 13 made you a little bitter. I have a problem with a guy like you giving advice.

    • "What does it cost the common shareholder? Tell me? Give me a number. I am a common shareholder, and I am glad Intc gives options".





      By chance, you don't work for Intc do you?

      Personally, I could care less if management receives stock options. Their performance should be a job requirement. Regular employees are required to meet certain standards and why shouldn't they?

      Management in this economic environment hasn't performed so well. In good economic times they seem to do ok and in poor economic times they do badly. Why not ask them to participate on the downside!

      How about this? A reverse stock option that requires management to forfeit stock and pay penalties for poor performance. Kinda like running your own business poorly and paying dearly.

    • For the record, I have frequently invested in Intel (always long) in the past and currently hold no position. However, it appears likely that Intel will slash the price of its Xeon server chips when Opteron chips from AMD become available. Seems to me this might further crimp Intel's margins, at least as long as AMD remains in business, as Intel has up until now not really had any competition in low-end server chips before. Any comments?

    • qb...perfect. I'm saving that one to use whenever people get confused about the options situation.

    • 29B was spent buying back shares over the last ten years. After the dilution caused by the stock options, buying back those shares kept the total number of outstanding common shares roughly even.

      If the options hadn't been issued, then the company wouldn't have had to spend the 29 billion dollars in order to prevent the dilution. That's money that could have been distributed to the common stock shareholders as dividends instead.

      Cost to shareholders: $29,000,000,000.00 or 4.38 per share that could have been distributed as dividends.

      Without the options the company would probably have needed to pay the employees more for their regular salaries. If the amount they would have needed to pay would have been 29B, then the company ain't worth jack, since it can't make money. If the amount would have been substantially less than 29B, then the common shareholders paid way too much for the employees. The cash was there to pay the employees, but it was used to buy back stock instead.

      Either way, the common shareholders who bought between 1997 and now got royally screwed. Or, more accurately, they screwed themselves. INTC never made a secret about what they were doing. The buyers should have known INTC was never worth more than 7 or 8 dollars a share.

      Fortunately for us traders, there is a continuing supply of 'investors' who don't get it, so we get to make money both long and short, playing the volatility until painful sanity finally returns to the market.

    • 29 billion dollars since 1991.

    • What does it cost the common shareholder? Tell me? Give me a number. I am a common shareholder, and I am glad Intel gives options.

    • Look, they could just give the sales figure if they want to keep it simple.

    • You are wrong, or miss my point, executives at WCOM, Enron, and Tyco have all been accused of lying about the bussiness to keep the stock high so they could sell options. Of course, they were also loaned money by the company so they could buy stock and resell it at a profit with no risk. Greed is the problem, not options.

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