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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Scott C. Lemon who wrote (28111)	9/14/1999 5:04:00 PM
From: Loring	Respond to of 42771

I have the ECONOMIST article in front of me and the MSFT part is attributed to "Smithers & Co., a research firm in London." They make no mention of Bill Parish, but the conclusions are the same as his. "For instance, Microsoft, the world's most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers." The Economist, August 7, 1999

To: Scott C. Lemon who wrote (28111)	9/14/1999 5:13:00 PM
From: Bearded One	Read Replies (2) \| Respond to of 42771

Hi. Nine times out of ten, anyone who complains that they tried to talk to CFO X or CEO Y, but nobody will listen to them is probably a crackpot. I mean, the guy goes to Microsoft uninvited and offers to restructure their 401K and is surprised when they ignore him? Come on! On the other hand, he may have a point. Specifically: First of all, you make a $250 million investment in WebMD for an 11 percent equity stake and part of the deal is that WebMD commit to $100 million of advertising on MSN network. At the same time, Microsoft agrees to subsidize an equal amount in medical prescriptions for people using WebMD. Of course there are a few other interesting aspects of this transaction, of which I won't address in this report. You have basically bartered a purely paper transaction and current accounting rules will allow you to recognize the entire $100 million as revenues for MSN network, even though you are just “trading checks.” That is, you are trading subscription subsidies for advertising revenues. I think we need more details, like how did MSFT pay for WebMD. If it was by stock, then aren't they kind of reporting stock sales as revenue? It's not fair to ask MSFT to report their 65 billion overhang as debt. They owe their employees stock, not money, so if their stock is as worthless as Parish says, then the debt is just as illusory.

To: Scott C. Lemon who wrote (28111)	9/14/1999 9:14:00 PM
From: Frederick Smart	Read Replies (2) \| Respond to of 42771

Comment About Microsoft's Financial Practices.... >>I had heard a number of times about rumblings with respect to Microsoft and their stock options. It now appears that this gentleman has put together quite a web site, and SEC actions, against Microsoft ... Interesting that these charges are based on corporate handling of stock options and the monies involved in the exercise of options ... a recent subject of discussion here ... Anyone care to read and comment?>> Scott: This thing has been brewing for some time. Two weeks ago Microsoft executed some of the largest put option trades recorded in financial history - chosing to do so here in Chicago instead of elsewhere. In line with what Bill Parrish's theory, they were a massive seller of put options. The fact remains, just as with the banks buying and selling favors in Washington in the Savings & Loan debacle, Microsoft has the power to buy and sell Wall Street. The street has made a ton of money playing along, but just like their other practices, this game will eventually be exposed. Truth has more power than any and all the money and value put together inside Microsoft. Gates et. al preside over a house of cards. When you add up the entire record, you can see common threads in the actions of monopolists who abuse their power willfully and aggressively. Unethical behavior is based on an intent to take energy and abuse the trust of others. Exposure of this fraud will eventually cause the energy and trust from this well to tap out. And here's the real kicker. The many many thousands upon thousands of put option contracts sold will end up as unpaid liabilities for I don't think the SEC will allow Microsoft to print paper to satisfy these claims. All this stuff makes for quite a dramatic storyline. Novell, by comparison, looks better and better. Peace. GO!!