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

To: Charles Tutt who wrote (67404)	4/16/2002 1:11:53 PM
From: jonkai	Respond to of 74651

I would guess that, with MSFT stock languishing, the ESO program is less of a recruitment attraction than it once was, so its use will decline and eventually not be an issue. let's put it this way.... there is no reason why ESO's shouldn't be even more "fully" disclosed.... the more the merrier.... unfortunattly for MSFT, this ESO program is the only way it makes its cash flow..... without the ESO program, MSFT would have negative cash in the bank or close to it...... what do you suppose would happen to MSFT's stock if that were ever realized by the general market....... that is why i would disagree that it is "full" disclosure.... i doubt if you asked one hundred people on a street corner "where is the cash horde MSFT has come from? by selling products? or having their employees prepay their wages, and MSFT gambling in the stock market? i doubt you would get one correct answer..... i think companies should use ESO programs as much as possible and as much as they do now even MSFT.... but since they are using it against shareholders rather than for the shareholder..... by not buying back the stock they promise in their own calcs... they should disclose every bit of it, so that general Market forces compel a company like MSFT to be shareholder friendly and buy back stock, or compensate them in some way for all this pay that is going to employees...... it is a sick form of inflation that is never figured into the economy..... inflation that hurts everyone.... even the company eventually, because all pyramids like this collapse eventually..... the best thing that can happen for our economy is that MSFT doesn't collapse all at once, just slowly..... which it is doing...... hardly anyone understands this.... not even an accountant like Exacctnt does fully..... if he did he would have run kicking and screaming from this stock, instead of losing money on gambling on it in june-July like he did..... jon.