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Technology Stocks : How high will Microsoft fly?
MSFT 483.03+0.5%Dec 5 9:30 AM EST

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To: johnd who wrote (51572)10/18/2000 8:37:13 PM
From: David Howe  Read Replies (2) of 74651
 
<< Cash and short-term investments totaled $24.71 billion as of September 30, 2000.

Equity and other investments at September 30, 2000 were $20.53 billion. >>

That totals $45.2 billion. Even using a no-risk investment returning 5.5% they would have almost $2.5 billion in investment income each year. That's about $0.50 in EPS not including the fact that they consistently add to this total every quarter. And, I bet they can solidly beat 5.5% on a long term basis. MSFT can keep the investment income game going for a long, long time, without even cutting into principal, IMO.

Dave
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