How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 486.50

+0.3%

3:59 PM EST

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To: David Howe who wrote (71133)	7/15/2002 1:08:24 AM
From: jonkai	Read Replies (1) of 74651

They're not using the method that Coke is going to use. You are sighting numbers that are based on ALL accumulated options to date and based on the the massive bull market of the 90s. I know this is complicated for you, but some of us understand the theory. are you completely daff man..... the numbers are cumulative.......as the options build up.... the expense gets more and more till it is a third of MSFT's earnings... even as the future marches on..... as another article points out for COKE below....., MSFT's stock price is based on FUTURE earnings.... if MSFT's FUTURE earnings are cut by a third, then people are going to notice.... hello? is anybody awake in there?...... then trying to argue everything will be all right because MSFT's stock price won't go up? are you nuts? hey, let's all get a piece of the action on a stock that will not go up..... what matters is how many options are granted..... because even if the stock is one dime above the option strike price, those options will cost you dearly....... and MSFT makes sure its options are exercised by "repricing" through reissuing replacement options at lower prices..... biz.yahoo.com If the board grants options at approximately the same level as 2001, the expected impact on the company's earnings will be 1 cent per share for this year, building to about 9 or 10 cents per share by 2006 as the right to exercise the options matures.

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