Replies to post #61705 on Intel Corp (INTC)

[Professor MD]

Dear Elmer.
There is no real difference between Wbmw and me as far as the value and interest of the Intel “brain trust”. (see my post 61702).
MEMBERS OF INTEL’S ”BRAIN TRUST” DO NOT BENEFIT FROM THE BUY BACK. THEY NEED AN INCREASE IN THE PRICE OF THE SHARES.
The buy back strategy was needed when dividend was tax fully and twice (the company and the recipient).
The lowering of the income tax on dividend to 15% made buy back of shares obsolete.
Wall Street shows renewed interest in dividend.

[mmoy]

I think that stock options cost less than straight salary as there's a lot of benefits keyed off of salary.

This is a pretty interesting discussion as I have stock options at my company too and the share price has tripled since 2001 or 2002 - whenever it bottomed. At some point, employee psychology turns to greed and employees hold onto their options for greater appreciation. I don't think that this has happened with Intel or my company at this point. But I've been happy to just hold on.

I don't need the money nor the taxes that would get triggered on an exercise. I think that this is an issue for many big-cap tech companies that are doing well and Intel is certainly in that category.

[wbmw]

Re: share buybacks, beyond that necessary to prevent dilution, because additional buy backs only benefit those who sell, not loyal shareholders who hold for the long haul.

Not entirely. Any long term shareholder can benefit from the continued reduction in the outstanding share base. The more Intel buys back, the more each individual share is worth. The longer you hold, the more buybacks have occurred during the duration of your ownership.