How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 486.98

-1.4%

3:59 PM EST

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To: 16yearcycle who wrote (21075)	4/21/1999 12:11:00 AM
From: Exacctnt	Read Replies (1) of 74651

Eugene, Your right, as long as Microsoft keeps growing their Cash it increasingly becomes a serious factor in their reported earnings. For fiscal 1999 Microsoft's Investment Income (Interest Income portion) was 261M for 1st quarter, 337M for 2nd q, and 370M (without the 350M gain) for the third. Their Long Term Investments also stand to increase substantially in value but the gains will be locked in until the investment is sold. As I am writing this, it suddenly struck me, Why do they keep such a large and growing Cash balance? Isn't there a better use for the cash other than Short-term certificates and CD's? What could be Microsoft's rationale for hoarding Cash? Regards, Bob

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