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

To: dybdahl who wrote (71416)	7/21/2002 12:53:28 PM
From: Charles Tutt	Read Replies (1) \| Respond to of 74651

If the employees aren't interested in options, then why does Microsoft waste resources granting them? Charles Tutt (SM)

To: dybdahl who wrote (71416)	7/21/2002 5:01:07 PM
From: Simba	Read Replies (1) \| Respond to of 74651

MSFT is a stable low-growth company with a monopoly in the desktop market. Once this bear market runs its course and all the accounting flim-flam and stock option chicanery is resolved MSFT will be viewed as a stable company to work for just like people look at GE etc. Even during this down market it is viewed as a rock thanks to the monopoly and the generous cash flow that they have accumulated and retained in the balance sheet due to stock option dilution scheme and the nice tax writeoffs from that. The key is that MSFT attracted a vast majority of its employees primarily for the stock option bonanza in the past ; the fact that they made software was a side show. In fact during the Internut mania they lost many employees to the dot coms when the dot com stocks were outperforming MSFT particularly after the anti-trust suit. Now many of them have returned or returning to MSFT for its stability. That options culture is dead and 10 years from now once the people who cashed in their lotto tickets (I mean their options) during the mania retire or leave MSFT will have a core team of managers and employees who actually work to make a product as the primary objective just like say the employees of Ford or GM. Simba