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

To: David Howe who wrote (57775)	5/1/2001 4:42:35 PM
From: David Howe	Read Replies (2) \| Respond to of 74651

Something else I came across in the 10Q for the 2nd quarter. << Second quarter investment income was $751 million compared to $770 million in the second quarter of the prior year. The decrease was due to lower net recognized gains, partially offset by higher interest income from the larger investment portfolio. Interest and dividend income reached $518 million compared to $371 million in the prior year's comparable quarter. >> The bears love to say 'what will happen to this investment income when MSFT has to report all their losses on stocks?' The answer is 'not much'. Notice that $518 million of the $751 million came from interest and dividend income. That's not income that's at any great risk. MSFT should be able to continue to report income from investment at a rate of at least $500 million per quarter from now until the end of time. Actually, since their cash and investment holdings continue to increase, they should be able to do better than this. IMO, Dave Edit: In addition, MSFT probably doesn't have many losses on their books. A few, yes. But, a majority of their holdings were established many years ago and are deep in the money.