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

To: johnd who wrote (42967)	4/22/2000 4:17:00 PM
From: Captain Jack	Read Replies (1) \| Respond to of 74651

johnd -- agreed,, over the next 30 months msft is going to own a ton of stock. The board is unable to buy stock back until the VSIO merger regulations expire. There may be a bounce when the 'remedies' are finally out and over. It6 may be a recovery or it may be a dead cat bounce-- of course one cannot rule out the possibility the cat will just splatter either. It WILL go down at the open as many rush for the door.. then I expect a slight recovery and from there who knows.. it could continue to recover or slowly bleed the next 18 months to a new level. With companies generating profits and excitement outside the courtroom there is money to be made with less agrivation .....

To: johnd who wrote (42967)	4/22/2000 5:05:00 PM
From: Charles Tutt	Respond to of 74651

Is it really that bad? 16.1 Billion shares? With a "B?" What fraction of that could Microsoft buy before it ran out of cash? Alternatively, how much dilution would it cause to print enough new stock to get out from under such a burden? Have they essentially made themselves guarantors of their own share price? I'm anything but a bull on Microsoft, but even I have trouble believing things could be that bad. JMHO.

To: johnd who wrote (42967)	4/22/2000 8:39:00 PM
From: rudedog	Read Replies (1) \| Respond to of 74651

johnd - re: MSFT's put warrants are from 78 to 69. There are 161 million contracts of them. This translates to 16.1 Billion shares worth. I am completely confused by this post. The Put warrants MSFT sells are a 1:1 instrument, not a 100 share contract like a standard options contract. So if MSFT has 161 million contracts, they are liable for 161 million shares, not 16 billion. Presumably MSFT could manage to buy that many shares, or, more likely, buy back the warrants.