How high will Microsoft fly? Message Board

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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: Kevin Laman who wrote (67262)	4/13/2002 6:20:20 PM
From: jonkai	Read Replies (1) of 74651

I wonder what MSFT is going to do with all the cash they have? I know they have been going into some joint ventures, R/D etc....but still it seems like an excessive amount of money not being utilized. look at this way, how much is it per share? it is about 10% of your share price.... which isn't much..... (current assets, minus current liabilities) even apple has about 50% of its share price in cash.... worse, MSFT needs that cash to buy back shareholder dilution/debt in the form of ESO's....... if for some reason they started to care about you shareholders again, and didn't want to dilute your value of your shares so much any more, they would need to spend about $45 billion just buying back shares so that your value doesn't get diluted by massive amounts just from the ESO's that exist now and/or may dilute in the future, let alone the ESO's that they grant every year to the tune of 200 million or so every year...... that's $11 billion dollars in shareholder dilution/debt they rack up every year from these grants.......(average for the past few years) they are making about $10 billion in profits, and issuing dilution/debt of about $11 billion per year.... anybody see any problems here yet? as you can see the $36.5 billion that they have in current assets minus current liabilities does not look like much when they are incurring this kind of shareholder debt every year......... course MSFT hasn't cared about the shareholder for 5 or so years, why start up again now?........ then they also have four suits going on a dozen against them, all with triple damages, and all in the $billions of dollar range..... do yourself a favor and add up that little liability..... also do yourself a favor and look up what this company's ESO debt problem is, not just what it's assets are.... jon.

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