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

To: Exacctnt who wrote (59805)	7/13/2001 10:55:45 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 74651

To enhance its stock repurchase program, Microsoft sells put warrants to independent third parties. Yes... and exactly how much does it charge to those 3rd parties for issuing these warrants? And under SFAS 133, the money derived from these kinds of transactions can be assessed as revenues and earnings, just "enhancing" MSFT revenues without actually increasing product sales revenue. N'est pas? When the stock was trading far lower and the premiums far higher for selling these warrants, they were likely netting far higher prices from frightened "3rd parties" looking to hedge their exposure from a source where they knew they could easily obtain these warrants without having to go directly to the CBOE. But we'll have to see where revenues and earnings travel over the upcoming quarters. Hawk