How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 483.03

+0.5%

Dec 5 9:30 AM EST

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To: ToySoldier who wrote (11653)	10/22/1998 3:17:00 PM
From: Gerald Walls	of 74651

I'm know there are many more reasons.... Too many to mention. What confuses so many people is that they're looking for a direct mathematical formula that drives the stock price based upon the financials of the company. They forget that common stock is really ownership of a business and not a derivative security based on cash flow, return on equity, or some other financial measurement. IMO, the primary reason that a company should care about the long-term price of the stock is that the members of the BOD are employees of the owners (shareholders) and were hired for the purpose of maximizing the long-term value of the business. Assuming the company has no need to do a PO for cash they shouldn't be concerned about short-term fluctuations in price except, as you mentioned, employee stock option value and the purchase of stock to cover the stock option exercises.

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