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

To: ed who wrote (30174)	9/27/1999 8:34:00 AM
From: edamo	Respond to of 74651

ed..."job function of the ceo..." what ceo "rule" are you referring to????? how do you value a company, quite simple.....nothing to do with stock price.....usually more along the lines of hard numbers such as book value. market does not value the company, it values solely the stock price on an execution by execution basis...business is not an auction...the market is....i think he said the stock was overvalued...not the business...you are missing this salient point of his remarks. you don't buy a business based on future value...current earnings and assets and a modicum of good will are the considerations.... ceo brings tremendous value to the "original" investors, who put up the seed money and took the risk. any stock you purchase in the "auction" does not cause benefit to flow back to the company....putting corporate stock options aside, the day to day value of the stock has no impact on the company...a business is not a "commodity"....