How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 472.22

-1.3%

3:59 PM EST

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To: Wahoo96 who wrote (26833)	7/20/1999 9:18:00 AM
From: codawg	Read Replies (2) of 74651

If the shares of the tracking stock were to trade up on the public market, then Softie shareholders would almost certainly benefit. If the offering is at $20 and the shares traded up to $60 then the value would have tripled. MSFT would still own something like 80% of the company with a value of $60 per share and MSFT share price would adjust accordingly to reflect MSFT shareholder increased value. MSFT would not go up the entire $40 because the internet business would only be a small part of their overall business. Think of CMGI. If LCOS goes up, then CMGI benefits, but not on a 1 to 1 basis. It is possible for LCOS to go up and CMGI to go down, but they will generally trend together over time. The same would be true with the tracking stock and MSFT. I am a shareholder and I support the tracking stock. It may be somewhat artificial, but it will add to shareholder value.

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