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

To: David Howe who wrote (71923)	7/31/2002 4:28:21 PM
From: jonkai	Respond to of 74651

Oh know, a whole penny, and up to 3 pennies in a few years. This options expense thing sure is a huge impact, NOT! as MSFT shareholder, you should figure out what the impact is on MSFT's share price.... because it is much different than GE's.... just a few days ago, MSFT said that the impact of Stock options would mean that MSFT earned only 16 cents rather than the 44 cents you were all led to believe... that isn't one penny, that is serious amounts of hits.... shareholders look to future earnings, and even if MSFT were to start expensing from scratch, in four years, MSFT's earnings would be hit by an average of 30% if MSFT continues to issue options at the rate they have been..... why in the world do you think MSFT refuses to do it? they know exactly what expensing stock options would do to their bottom line...... and they are scared to death what would happen..... god forbid MSFT's source of cash flow is taken away from them... imagine what would happen if MSFT only got cash flow from operations? the trickle would look like a drought..... jon.