Replies to post #3620 on Intel Corp (INTC)

[SemiconEng]

Elmer: I gotta agree with UAK. It is one thing to exercise options. It is another thing entirely to sell every last one of 'em. Not exactly a vote of confidence for the near-term share price. He could just as easily have exercised the options and held the shares. Shoot, I would understand if he sold enough shares to cover the exercise costs and taxes. But no. He sold every last share. With the exception of remaining options, that leaves Otellini with practically no position in Intel - only a few thousand shares. What kind of message does that send to shareholders?

So, there could be lots of reasons Otellini sold his options. The two of you express one point of view, but I'm sure everyone agrees there could be many other possable reasons. I'm not privy to Paul's personal life, so I can't ask.

Oh, and "By The Way", actually Paul still has a little more than "a few thousand shares". 393 thousand more on hand, PLUS 3.5 MILLION (That's Right..... MILLION) more options outstanding.
http://biz.yahoo.com/ft/030121/1042491012110_1.html

But hey, I'm not suggesting your statements were biased, or anything. Far be it for Me to even SUGGEST such a thing. Ya probably just didn't check the data before you wrote, Or maybe........ maybe..... ya think 393,000 in hand, and 3.5 mil in the bush is a "few thousand". I guess it depends on, if a person has already decided their "Point Of View"....... eh?

Semi

[Elmer Phud]

Spokeshave -

He sold every last share. With the exception of remaining options, that leaves Otellini with practically no position in Intel - only a few thousand shares. What kind of message does that send to shareholders?

The only message I see here is that tonight just isn't your night. You are wrong again. Mr Ottelini still holds hundreds of thousands of shares of Intel stock and millions of unexercised options.

http://biz.yahoo.com/t/53/3489.html

This link says he held 388,413 shares as of 12-27-03.

http://biz.yahoo.com/ft/030121/1042491012110_1.html

Mr Otellini exercised options on 1m shares at $3.41 each. He sold 900,000 shares in two lots on January 16 and 17, for about $15.2m, netting a profit of about $11.8m.

He retains ownership of 393,000 shares and options on 3.5m shares.

Despite your claim, this link says he exercised 1 million options and sold 900K. It is clear that you are much more interested in bashing than doing a little simple reading.

Why not call it a night, get some sleep and perhaps tomorrow will be a better day for you.

EP

[Windsock]

Re: "With the exception of remaining options, that leaves Otellini with practically no position in Intel - only a few thousand shares"

You are only off by factor off by a factor of 100 for stock owned.

When you look at an investment portfolio's value you don't toss out the value of options to obtain its total value. Are you trying to suggest that a vested, but unexercised, in-the-money stock otion has no value? Guess that is another example of the divide equals multiply math aka more is less.

[wbmw]

Spokeshave, I am not going to disagree with your speculation. For all I know, you are correct. Any one exec selling a percentage of shares can be interpretted many different ways. I remember all the times Intel investors used to speculate about how AMD execs would sell out of their shares from time to time. Who knows what motivates these sales? That's why it's open to interpretation and speculation. You could be right, for example, but on the other hand, it looks like Otellini has a large percentage of shares and options left, he was only one of many Intel execs taking this opportunity to divest, and not to mention the fact that this is a prime time in the economy to diversify out of technology stocks. Maybe this is a good indication that Intel could execute excellently or poorly this year, but the prospects for the stock remain the same either way. I'm a lot less sure than I used to be.

wbmw

[fingolfen]

Elmer: I gotta agree with UAK. It is one thing to exercise options. It is another thing entirely to sell every last one of 'em. Not exactly a vote of confidence for the near-term share price. He could just as easily have exercised the options and held the shares. Shoot, I would understand if he sold enough shares to cover the exercise costs and taxes. But no. He sold every last share. With the exception of remaining options, that leaves Otellini with practically no position in Intel - only a few thousand shares. What kind of message does that send to shareholders?

I think some of the answer may lie in the TYPE of options sold in this case. From a tax standpoint, it never makes sense to "buy" non-qual options as and net gain from the sale or purchase of non-qual options is taxed as Income, not capital gains.