MSFT apparently faces an $8.4 Billion dollar liability if its shares remain below $74/share.
That's not negative, it's a one-time charge. When their puts actually pay off, well that's just part of net income. Nothing fishy there, it's all in the 10-Q. But if, heaven forfend, it's a loss, that's okay because it's a write-off, as long as there is enough investment income to add to the net income to meet the lowered estimates.
And I hardly believe, with the current slump in computer sales, that we're seeing increased sales of actual revenue from sales of software. That would simply defy simple logic.
Never fear, logic is neither so easily defeated nor defied. Microsoft's increased revenues include investment income. Their operational earnings will be down this quarter. Call that a wacky prediction if you will.
In the past, when MSFT was small enough to attain 50% earnings growth, MSFT was widely lauded for their conservative guidance and credible accounting. Now that their operational earnings are decreasing, they will soon be derided for shedding those scruples.
Dave |
