Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (98368)	8/8/2002 6:09:49 PM
From: SOROS	Respond to of 99280

A "light" in a ever-increasing array of darkness! The first response to my post was someone trying to tell me the actual definition of "market cap." I remain, SOROS

To: Logain Ablar who wrote (98368)	8/8/2002 6:15:31 PM
From: Steve Lee	Read Replies (2) \| Respond to of 99280

"...if MSFT stops issuing new options and continues generating cash @ this level..." Not a likely assumption. MSFT has been able to produce cash at this level because of granting options. Those options are a salary substitute, and salaries are a cost of doing business. They are also a necessary part of doing business. Take away the options and either: 1) You have to fill the void with increased salaries, which eat into the profits - hence you don't generate cash at this level any more or 2) Employees leave and some of those that remain are less productive, which eat into revenues - hence you don't generate cash at this level any more