xmen

Wall Street Spanks Bottom of Intel's Rookie CFO

My theory on why Intel stock went down so much.
Because of employee stock options.
you forgot to take into account the money Intel has to pay its employees every years because of stock options.
This is just simple math.

on an average an Intel employee gets around 1000 stock options every year.
There are 50000 US employees.

and say you make $8 per option assuming a stock price of $26(1998 price was $19)

8*1000*50000 = 400 million dollars.
Now, if you purposefully pulled the price down so that all stock options are underwater, you dont have to pay your employees anything.

Also, look at insider options exercising.
All Intel execs exercised their options late last year to make sure they got the money.
The employees are typically not that smart and dont anticipate such a price drop and waited until new year to exercise them.

Intel as a company is an extremely horrible company.
someone should talk to SEC about this.