How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 489.98

+1.4%

3:33 PM EST

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To: technologiste who wrote (71797)	7/27/2002 6:42:28 PM
From: jonkai	Read Replies (2) of 74651

Let's do the arithmetic: let's do some more arithmetic.... since 1997 (5 years) MSFT has added almost exactly 600 million shares to shareholders basic sharecount....(thats after ALL buy backs done so far) at todays price, that represents about $27 billion dollars that would need to be transferred back out of MSFT's cash horde, to shareholders pockets, just for shareholders to break even from five years ago and get their heads back above water...... that includes ALL buy backs MSFT has ever done, including the stunning doubling of share buy backs this last year...... oh, and that doesn't include another 800 million more options, that MSFT GRANTED ontop of that in the same time period.... just waiting in the wings to push the shareholder even further down in the water...... representing another $36 billion dollars worth of dilution....... what does that mean? it means MSFT has granted 1.4 BILLION options in the last several years...... ONTOP of any and ALL buy backs that MSFT has ever done...... that is a STUNNING number..... that is 25% of the shares outstanding........ from just 5 years ago....... average 5% handing out shares like they are candy per year...... it took them $6 billion dollars this year just to buy back the little ole 128 million shares this year..... THEY ONLY MADE $7.8 Billion in net income for the year..... and they still couldn't stop the dilution totally....... anybody see a problem yet???? jon.

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