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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (8353)	9/24/1999 11:51:00 AM
From: Daniel Chisholm	Read Replies (1) \| Respond to of 79169

Mike, I think you're wrong [...Ballmer...]He's a biased analyst. His company actually profits from any dip in the stock price, and he very well knows that the earnings will speak for themselves in the long-term. and from earlier, #reply-11344622, All: Microsoft has an interest in deflating the market, remember. Their employee stock and option programs have been hurting them the last few years, and the reason is the inflated price. People don't go to work for MSFT for the salary - they do it for the stock and option plans. So Microsoft long-term must be a big buyer, and as any Buffett fan knows that means they are rooting for it to go down - any break, however temporary, helps. I agree that Microsoft pays their employees very highly, in the form of granting stock options that then appreciate fabulously. But in order for this to work (keeping their employees overpaid and happy), they need to have a stock that is more or less constantly rising. Even though a MSFT dip/crash would help lower the cost of Microsoft's stock buyback, that is just the tail of the problem: the body is that they NEED their stock to appreciate, in order to successfully transfer wealth to their options grantees. If MSFT dropped 50%, just think how many dissatisfied Redmondites there would be... - Daniel