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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (25334)	6/30/1999 8:32:00 PM
From: Jill	Read Replies (1) \| Respond to of 74651

Thread: THANX TO ALL for great explanation of reserve Jill

To: t2 who wrote (25334)	6/30/1999 9:25:00 PM
From: John F. Dowd	Respond to of 74651

t2K; That was a good summary of MSFT's accounting practices. Note they carry the liabilty to what they owe the customer whereas most other do not. This reflects a commitment to the customer that goes right to the heart of the matter - earnings. This is one of the reasons that there pe appears so high. They have a ton of unrealized Revs. I believe they also are very conservative in how they amortize their R & D as opposed to other companies. Other companies accelerate Revenue recognition and spread out R & D whereas MSFT does just the opposite. All of this is a sign of a company so solid that it has better reserves than an insurance company. What bothers me is that some twit at WSJ has taken them to task for being so financially responsible. JFD