How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 481.72

+0.2%

3:59 PM EST

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To: Bilow who wrote (34532)	11/21/1999 8:32:00 AM
From: Reginald Middleton	Read Replies (1) of 74651

That is not how corporate valuation works. Most companies are valued by management and product inventory. If MSFT had a billion dollars in cash, that billion gives them XX billion in real options to manipulate at will. These option are worth either more, equal or less than a billion dollars, given the situation and oppurtunity exercised. MSFT has proven the ability to exercise their real options with greater ability than their competition, which makes a billion dollars in MSFT hands worth more than a billion dollars in your hands or a billion dollars in the bank. Using your ideology, all companies should be valued at a multiple of 1 based upon the amount of money they have in the bank. Bill Gates is worth more having $100,000 in the bank than Ed Slovowiczh (whoever that is:-) is worth with $5 million in the bank, due to expertise, connections and proven execution ability.

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