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

To: johnd who wrote (46752)	6/15/2000 2:21:00 PM
From: mozek	Read Replies (1) \| Respond to of 74651

I believe that Microsoft will be granting options as usual during the next review period. Mike

To: johnd who wrote (46752)	6/15/2000 7:25:00 PM
From: David Howe	Respond to of 74651

<< Answer to this will help alleviate my concern about dilution from the 70million new options grant. >> Don't worry too much about dilution from option grants. If everyone that was granted these shares stayed 4.5 years and became fully vested, it could equal dilution of around 1.2%. I'd bet that only 1/2 of these options are ever executed, so let's say it's 0.6% dilution. With today's stock price, what's that, 3/8 of a point? It also depends on the stock price; if 1000 shares with a strike price of $66 are cashed in at $100 that's dilution of only 340 shares. Now you're talking a whole lot less dilution than even my prior example. Yes, employees do get their regular options grant mid way through this year. Additional dilution from this point forward isn't much of a concern though. Dave