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Technology Stocks : How high will Microsoft fly?
MSFT 487.55+0.1%Dec 30 3:59 PM EST

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To: DiViT who wrote (52247)10/26/2000 3:31:11 PM
From: Dave  Read Replies (1) of 74651
 
Re "Some dot-commers back at Microsoft"

I talked with some Softies and got some information about this...

Quitting your job at Microsoft for a while and getting rehired when the stock is depressed is a shrewd move because you get to throw away your worthless high-priced stock options and get them repriced at current prices. And of course you can take a nice sabbatical between jobs.

In addition to repriced options, the MSFT employee stock purchase plan allows Softies to buy a certain amount of MSFT stock at 30% below the lowest price it reaches in any given quarter, so the ESPP has looked a lot more attractive recently as MSFT's price has been down.

Another factor is that when Softies quit their jobs, they have to purchase their shares or lose the options. So most vested employees are less likely to quit right now than when stock prices are high. Many people who might be inclined to quit will wait until the share price is higher.

So it's not at all surprising (or particularly interesting) that MSFT should be seeing more returning employees than departing employees right now.

Dave
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