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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: AurumRabosa who wrote (68117)9/23/1999 5:58:00 PM
From: Freedom Fighter  Read Replies (2) | Respond to of 132070
 
Ron,

At a minimum, MSFT would like for the stock to fall from time to time because they basically have to buy in tons of shares each year just to keep the dilution from exercised options to a minimum.

If the stock falls they can buy in many more shares for the same amount of money.

Most tech companies face the same problem. The higher the stock moves in relation to free cash, the more free cash gets absorbed to just run in place.

Wayne