How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 483.16

+0.5%

Dec 5 4:00 PM EST

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To: johnd who wrote (43934)	4/30/2000 5:37:00 PM
From: Sir Francis Drake	Read Replies (1) of 74651

johnd - the "dilution" mentioned has two sources. First, any addition of shares to the pool is dilutive (unless used for accretive acquisitions). MSFT's employee options when exercised add to the pool - the dilutive effect. In the past, MSFT was able to counter a lot of that by buying back shares. Now that they are unable to do so (for a time), the dilution will hit full force. Second, is the issue of the warrants. The way MSFT has structured this is that if the option runs against them, they have the choice of either paying off in cash, or, paying off in equivalent shares. Should they choose the latter, that again adds to the pool - hence the dilutive effect. Re: 6 months, here are the rules w/ all the exceptions etc. -- 204.192.28.3 Morgan

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