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

To: ToySoldier who wrote (36118)	1/6/2000 8:06:00 PM
From: taxman	Read Replies (3) \| Respond to of 74651

"if [microsoft has] to dip into these [cash] reserves, it would not be a good sign." what does this have to do with earnings? regards

To: ToySoldier who wrote (36118)	1/6/2000 8:09:00 PM
From: Elmer	Respond to of 74651

It's not cash reserves, it's charges to earnings like a special charge for settling a dispute with a customer, for example, that a company takes in one period and can later reverse to meet the street's earnings expectations if a subsequent shortfall occurs. These charges are usually overestimated and highly successful companies justify it to auditors as being conservative in presenting financial results. Most companies that can, do it to manage earnings. To your point, if MSFT came up a penny short of the whisper number, the street would conclude that the buffer is gone and much hell would follow.

To: ToySoldier who wrote (36118)	1/6/2000 8:30:00 PM
From: John F. Dowd	Respond to of 74651

Toy Boy: I remember when Maria Butter-omo suggested that CSCO would miss their numbers last qrtr. They exceeded them. What is the basis of these very scurrilous rumors. They are costing a lot of little guys a lot of money as they get shaken out. To repeat an unfounded rumor in a public forum is totally and nearly criminally irresponsible. This whole down draft has been manipulated by the big money boys sitting on the sidelines with a lot of cash itching to get into those stocks which will make them a lot richer if the can buy in at a 20% discount. JFD