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

To: KeepItSimple who wrote (57031)	4/2/2001 6:50:55 PM
From: David Howe	Respond to of 74651

<< If MSFT stopped buying its own stock, this thing would be at $20 tomorrow. >> That is totally and completely ridiculous. They would have used up the $20 billion in that time frame. I'll bet you that they only bought back about $1 billion in stock this quarter. Not even close to the $27 billion in cash. Dave

To: KeepItSimple who wrote (57031)	4/2/2001 6:57:53 PM
From: sandeep	Read Replies (1) \| Respond to of 74651

KeepItSimple, I don't think msft is spending this money to prop up the stock as you allege. There is simply not that much money with the company and they are not that foolish imho. If sellers want to sell, they will sell it and drive the price down. There is something going on that you and I don't understand. Just move away from the stock in terms of buying or selling. It could be staying afloat because of some unknown reason which will make itself clear soon. Just wait and watch, imho...

To: KeepItSimple who wrote (57031)	4/2/2001 7:37:43 PM
From: The Duke of URL©	Read Replies (2) \| Respond to of 74651

Perhaps you might wish to keep it even more simple. <MSFT is using its huge 20 billion cash pile to prop up its stock. > If MSFT is selling puts they are receiving money, not spending money. Merely selling a put has no immediate effect on the stock price. IF msft is selling puts because it "knows" the stock is going up, well, then they will just have a bigger cash hoard if the stock goes up. If the stock goes down, then they will be just supporting it at a lower level when the stock is "put" to them leaving more to be divided by us remaining "bagholders". Again, selling a put, does not immediately, "buy the stock". I guess my failure to understand this concept of sophisticated finance is why I have never been able to be a rock and roll day trader like some.