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Technology Stocks : How high will Microsoft fly?
MSFT 510.37+1.4%Nov 14 9:30 AM EST

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To: DavidD who wrote (12513)11/23/1998 12:56:00 PM
From: Reginald Middleton  Read Replies (1) of 74651
 
<In other words, if MSFT stock falls below $88 anytime soon, people will start putting those warrants back to MSFT for cash. At $76, the whole liability can be put to MSFT.>

And what is the probability of the stock falling to those levels and staying there for any significant amount of time?

If the stock fell to the average price, there would be very little putting for the article failed to take into the account the premium paid for the warrants. It must fall below the premium minus the strike price. Even then, MSFT will probably make off like a bandit since they now have a cheap source of stock to fund thier meritorious compensation packages. MSFT stock is currently more valuable than cash.
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