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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?


To: Charles Tutt who wrote (18613)8/12/1999 4:52:00 PM
From: Prognosticator  Read Replies (1) | Respond to of 64865
 
Thanks Charles: the dilution approach must be how Microsoft are handling this issue, otherwise it could prove disasterous for them. Of course Microsoft can issue new shares to get the cash to buy the stock to honor the options.

It is still interesting to look at the options liability as a percent of Market Capitalization:


Microsoft Sun
Liability due to Options $26.31B $1.3B
Market Cap. $463.03B $54.219B
---------------------------------------------
Liability as % Mkt. Cap. 5.6% 2.3%


So, Microsoft has twice the exposure as Sun, even though their PE ratios are almost the same now (59.29 vs. 56.45). However, I'm not sure how to interpret this, and my brain hurts.

P.