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

To: David Howe who wrote (55219)	1/15/2001 4:00:45 PM
From: Charles Tutt	Read Replies (1) \| Respond to of 74651

Let's focus on the new options about to be issued, which is the topic at hand. I doubt they'll have a strike price of $70 if they're to be effective in holding employees. Suppose they issue options on 100 million shares, roughly "at the money." What is that, about 2% dilution? Of course, by buying in shares the net effect on shares outstanding can be minimized, but shouldn't the money expended doing so be considered a cost (regardless of what GAAP says)? Will the Microsoft employees who have been pushed close to bankruptcy by their options be anxious to get more? eastsidejournal.com I think the stock will trend down, so you have a point. But if it does, how effective will those options be in recruitment? JMHO, of course. Charles Tutt (TM)