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: Dan Spillane who wrote (51917)	10/21/2000 2:02:45 AM
From: mozek	of 74651

Dan, I know a number of people who got caught in this spiral. If you consider the huge number of shares controlled by employees, this fairly common approach to exercising stock may have had a significant effect on the price. For years, people made a great deal of money by moving their options to the same number of shares on margin. As long as the stock continued to rise, the margin method worked, and others learned by example to do the same thing. I believe that this may have been a contributing factor in the relentless selling that we saw, even as the stock became quite undervalued IMO. Now that the stock has recovered enough to end any self-reinforcing margin call cycle that may have existed, I think a lot of people are reevaluating their financial strategy. I doubt that it will be susceptible to the same issue, if that was, indeed, a contributing factor. Mike

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