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Technology Stocks : How high will Microsoft fly?
MSFT 480.82+0.6%3:59 PM EST

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To: alydar who wrote (50621)10/4/2000 8:00:40 PM
From: The Duke of URL©  Read Replies (1) of 74651
 
>>To me, they tied up 5 billion dollars for a long period of time. Personally, I would sell the securities at a loss and move on. <<

The write down may come from the discounted net present value of 5% versus the assumed rate of of 5.85% for 30 year treasuries, and have no direct effect from the market value of the conversion feature.

The $250MM would not be reduced by taxes if, to the extent of the writedown, it is used as a deduction from current non-operating revenue rather than being an adjustment to retained earnings and profits. In fact, if it could be all used as a non-recurring deduction, it will decrease the reserve for taxes account and Increase cash.

If ATT, which, kindly put, is directional challenged, chooses MS to service its 40+ Million homes served that would mean a revenue stream of approximately $8 Billion dollars a year to Microsoft.

Your advice to Microsoft Management might be under some circumstances, ill-considered.
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