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Technology Stocks : How high will Microsoft fly?
MSFT 490.06+0.7%3:59 PM EST

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To: vinod Khurana who wrote (3304)9/24/1997 12:57:00 PM
From: Joan Osland Graffius   of 74651
 
vinod, Re: insider selling at Microsoft. People at Microsoft have to exercise their options in a certain number of years or they loose them. If you look at the annual report you will see that the early owners at microsoft have options valued at a cost bases of $0.155 which tells me these folks have to exercise those options this year. Both "Bill" and "Paul" were part of this group. Investors that bought Microsoft that year understand this cost bases. Now in the US when corporate officers exercise the options they are forced to sell them because of our tax laws. Now I am not saying that your observation is or is not correct that Bill and Paul have lost confidence in the company, just one must weigh the potential scenarios that would cause them to exercise their options and sell the stock. This could infact be the first year these guys have to exercise their options and sell them--1987 to 1997.

Joan
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