How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 423.31

-1.6%

Feb 2 3:59 PM EST

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To: Exacctnt who wrote (59751)	7/12/2001 4:11:40 PM
From: Dave	Read Replies (2) of 74651

Exacctnt, you have misunderstood. I may not have been clear enough. If not, I apologize for the confusion. You and Dave have implied that MSFT is hiding investment income and losses in Operating Earnings. No. I did not say that. I said, "Microsoft has lumped its investment gains in with its operating earnings." I meant that they had added them together when computing the net income, thereby exaggerating their earnings, not that they had included investment income in their operating earnings. Many other companies report their investment income as one-time gains. This seems to be make more sense, especially because you certainly don't want to apply a high P/E to a company's investment gains, which as MSFT has demonstrated can evaporate much more quickly than operating earnings. Dave

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