Intel Corp (INTC)

[Professor MD]

Dear wbmw.
Re: ME: “Please note that during the first quarter of 2008 Intel distributed 132 million shares as bonuses. That is 528 million shares per year.”

YOUR ANSWER: ”If you look at the 10-K, you will see that these were not new grants, but rather exercises from the current pool of existing options, which numbers about half a billion shares at the end of 2007. Please look at my posts to Joey. The sustained amount of buyback needed once the pool evaporates is about 60-80M per year, based on grants in the last 2 years.”

MY ANSER: It was obvious to me that “these were not new grant”. The issue I have with Intel’s management is that it is unfair to the shareholder to spend such a large fraction of the earning on repurchase of shares. I believe that we (the shareholder) prefer a significant larger distribution as dividend.


Re: YOUR ANSWER: “Only in the mischaracterized way that you presented the data. This is not the case long term.”

MY ANSWERE: My data were taken from the Q1 2008 report. I do not wish to postpone my fair share of the earning as dividend until half a billion share are bought back by Intel.