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

To: Charles Tutt who wrote (22108)	11/2/1999 12:09:00 AM
From: JC Jaros	Read Replies (1) \| Respond to of 64865

Yeah, I posted the link awhile back. It's kind of a stale news piece that /. apparently picked up just yesterday. Someone *did post the dollar extension for SUNW and it was in line or lower than many others. MSFT was substantial and in a whole other realm. It's the kinda thing like, MSFT is using (avoiding the word abusing) this options/expense loophole to the point where it's drawing attention to the quality of the M$ earnings line. It's not like the world is going to have to go back and re-state earnings, but it's not an easily defendable practice, as twister will reconcile. Also, someone (Proggy or Roger?) posted that M$ uses more options. Is that true? If so, how does that square with the rattling about M$ 'abuses' of contract labor (specifically temps)? The point there is that there would be a trendline of FEWER employees receiving options? -JCJ

To: Charles Tutt who wrote (22108)	11/2/1999 1:53:00 PM
From: Prognosticator	Respond to of 64865

Somebody even went through the calculations for Sun Dat woz me. Its real, but it represents something like a 5% overvaluation in MSFT, and a 2% overvaluation in SUNW (if you use the dilution approach to account for it). Of course, if the accounting rules were to change, then the year of the change would be a major disaster for MSFT, they would have to report a multi-billion dollar loss, and their stock price would tank. But nothing would really happen, since everybody would just say to themselves, "No problem, its just an accounting change". Microsoft's bigger problem is that they've run out of places to grow. That's why they're now a DOW-WOW-WOW (Woof). P.