Intel Corp (INTC)

[DewDiligence]

It doesn’t matter that the notes were first offered on 11/19 (when AMD’s price was lower). What matters is the date when the terms of the converts became fixed (the so-called “pricing date.”).

Re Sanders’ purchase: I should have left out the word “bad.” Insider buying or selling immediately before the release of material news – whether good or bad – is a violation. This might seem counter-intuitive; i.e. one might expect it would be ok to buy before releasing bad news or sell before releasing good news.

In practice, however, “bad” news is often treated by the market as positive (if it is not as bad as feared) and, similarly, good news is often treated as negative (if the market was expecting even better news). Hence the SEC’s policy of prohibiting any insider trading based on non-public material information is a sensible one. Regards, Dew