Intel Corp (INTC)

[imho]

Dew,

"Consider a simple example of a company which has a net worth of $1B, 100M diluted shares outstanding, annual earnings of $50M, and an annual expansion of 5% in the diluted share count from option exercises. The book value of this company at our starting time is the net worth divided by the diluted share count: $1B/100M = $10/sh.

Under GAAP, this company would appear to be profitable during the year in question because its EPS would be $50M/1.05B = $0.048."

Are you sure about this? Given your numbers for this example, shouldn't EPS be $50M/100M = 0.50 $/sh?

If this is an error, does this affect your argument?

IMHO