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


To: Charles Tutt who wrote (55218)1/15/2001 3:46:35 PM
From: David Howe  Read Replies (1) | Respond to of 74651
 
Charles, The dilution is hardly worthy of concern. Each year MSFT dilutes the number of outstanding shares by what, 1/2 of 1%? If that's what it takes to keep good employees at MSFT and attract new employees, I'm all for it.

The above number is just an estimate, but it assumes that a good portion of the granted options are actually vested and executed. It also assumes that the stock price continues to appreciate. For example. None of the options granted last year will have any dilutive effect unless the stock gets back above $70. So, take your pick:

1. The stock goes back above $70
2. The options have no dilutive effect

You think the stock is going down, but you think the options will have a dilutive effect? Which one do you really believe?