Why is intel up?

[noob_trad3r]

This sounds bad, Why would intel need to dilute shareholders? Unless something is wrong and they are making up a story. I am not sure how this is good news.


Intel Corp. (INTC) shareholders have authorized issuing 134 million common shares under the company's 2006 equity incentive plan and extended the plan to June 30, 2012.

The Santa Clara, Calif., chip maker said in a Securities and Exchange Commission filing Friday that after the increase it has authorization to issue 428 million common shares under the plan.

 

[mister_doodi]

Don't really see anything wrong with employee stock options.

 

[BostonTrader339]

Quote from mister_doodi:

Don't really see anything wrong with employee stock options.

intel is trying to retain its core employee base, probably in the face of asian competition overseas for their top talent being poached during the recession in california.

and, the stock price is so hammered down, many people who have been with the company more than the term of their contracts are underwater and would likely demand they be reindexed or they'd leave.

dilution with options isn't much of a concern to the stock price, it barely makes a dent in the total valuation.

but intel will go up because microsoft is starting a new hardware upgrade cycle with W7 coming out.

 

[noob_trad3r]

but is says they will be issuing new shares. Wont that increase the amount of shares outstanding?

 

[BostonTrader339]

Quote from noob_trad3r:

but is says they will be issuing new shares. Wont that increase the amount of shares outstanding?

yes. but only marginally. won't effect the price much.

 

[teun]

Quote from TRYKtrading:

yes. but only marginally. won't effect the price much.

Yeah, they only issue for 2 billion dollar. Totally negligible indeed...