How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 483.65

-0.8%

Dec 31 3:59 PM EST

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To: David Howe who wrote (71328)	7/18/2002 7:44:16 PM
From: jonkai	Read Replies (1) of 74651

If MSFT trades for $53 per share 2.5 years from now and there are ZERO options remaining vested and in the money? that will be because all 410 million options became part of your basic shares..... adding $21.73 billion in dilution to your share price...... don't you think that would be a problem? you would then own that much less of each of your companies earnings....... even better, what if MSFT decides to buy all these shares back..... costing them $22 billion, of the $36 billion they have in current assets minus current liabilities.... so that in 2.5 years, you own the same amount of the company, but the cash that is able to divide to each share is now down to $14 billion? so your book value is less...... jon.

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