Intel Corp (INTC)

[highlandpk]

I am talking about dilution that has already occurred and they are certainly factored into net profit per share computation. That’s the point. You may like it and that is fine with me. But I would prefer to see a stock I own buy back the accumulation.


Again, this is a growth play. If AMD continues to execute well, the exponential growth in earnings (500 - 1000%) per share could make 30, 40, 50% dilution acceptable - as long as the growth was a direct result of the dilution (i know that sounds strange). The reason AMD issued the convertibles is they needed the capital to survive long enough to get hammer/x64 to market - it seems, for now anyway, this was a very good direction to go.


If you are talking about stock options you should look at AMD. AMD Management folks have done quite nicely for themselves and with repriced options as well, remember? The exercise of AMD stock options is causing the dilution and if you’re a stockholder it is coming out of your hide.



stock compensation expense for 2006 was pegged somewhere around $60mm, which I can live with. If compensation for management becomes excessive, I will be livid. It is certainly one of my concerns going forward.