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Technology Stocks : Microsoft - When to short
MSFT 517.81-1.5%Oct 31 9:30 AM EST

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To: Moominoid who wrote (83)3/18/1998 8:17:00 PM
From: Russ  Read Replies (3) of 96
 
How about now?

Any info on why now is a better time than any other? From TA or FA perspective? In general, buying puts or shorting this stock is bad news. Yes, it's P/E is way above it's growth rate, it's earnings are also way overstated since the costs of options granted aren't on the P&L statement (so actual earnings are about 1/4 of reported earnings), if there is a bear market (20+% pullback) and MS gets hit all the put warrants they've sold could end up in the money and they may take a multi billion dollar hit.

Someday MS will go down, and due to their puts they might go down very hard, but do you have any reason to think the time is now?

-Russ
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