how MSFT uses GAAP rules to hoodwink the investor.....
MSFT uses the The treasury stock method, this method assumes that options or warrants are exercised and the proceeds from the exercise of the options or warrants are used to purchase common stock form the treasury.....
this is where it gets interesting.... the GAAP rules don't say anything about companies being REQUIRED to repurchase shares with the money received, it just assumes the company does....
MSFT conveniently forgets to repurchase these shares to keep dilution from overrunning your stock..... it repurchases small amounts, but the overwhelming amount of money they receive, they pocket as cash flow....
that is the problem.... MSFT is pocketing that money, and refusing to give it back to shareholders.... (how could they, they don't have enough money to repurchase all those new shares anyway)...... that is why they spent $6 billion this year, (most of their net earnings) and it didn't even lower the share count, that is how far out of hand this has gotten......
that is what most shareholders of MSFT do not understand..... and why it is so irritating for Exacctnt, Howe, Bowers, Url... etc... etc.. because they don't know how much value they have lost in MSFT stock..... true value, intrinsic value... not just the stock price, but stock price should have been their first hint....
figure it out, before it is too late... |
