How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 423.72

-1.5%

3:57 PM EST

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To: Dave who wrote (59678)	7/11/2001 9:50:51 PM
From: t2	Read Replies (1) of 74651

Dave, This statement that you made below makes no sense. I'm no accountant or anything, but it seems to me that when a company that sells for $70/share preannounces earnings of 1 cent per share, that's not that bullish for the broad market, particularly when that company is widely regarded as the only one whose profits will not be hurt by the economic slowdown. Impairement of the assets is not news. It was always there for the analysts to determine the amount of the losses. It was just a matter of booking the loss as already pointed out in another post. The other thing to remember is that if for example..MSFT had 5 billion in investments and about 1 billion in cash, then such a writedown might be significant...and of course would still not be a surprise even in that case. For a company with 30 billion in cash and 17 billion in investments, it is not significant. Did you also notice that they seemed to hint of a recovery in those equity investments as well. What this tells you along with the upbeat comments about the 3rd quarter by Motorola is that there is still a good chance of a recovery in certain sectors. MSFT is well known to have one of the most conservative accounting practices. Sorry Dave. There is really no way anyone can put in a negative spin on this release. The afterhours market reaction is already telling us that.

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