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


To: ProDeath who wrote (72154)8/14/2002 4:07:33 PM
From: David Howe  Read Replies (4) | Respond to of 74651
 
<< so dilution will remain a feasible prospect. >>

If the stock goes up, it's a "feasible prospect". The lowest option grant was around $54 (just recently). Most are above $62. So, yes, if the stock goes UP there is modest dilution due to option grants; which MSFT counters with stock buy-backs.

<< When was it, maybe a couple of years ago, that MS repriced existing employee options downward, does anyone else recall the details? >>

They didn't re-price any options. They gave their employees an additional option grant that they normally wouldn't have recieved. This took place after the Judge Jackson ruling when the stock was around $65. It helped keep employees motivated even in the depressing time of Judge Jackson. Obviously if the stock were to go UP to $65 these would have a minor dilutive effect.

Do you think the stock will go to $65?



To: ProDeath who wrote (72154)8/15/2002 6:31:20 AM
From: sandeep  Read Replies (1) | Respond to of 74651
 
I think most companies don't reprice options because of some SEC regulations which have to show that as an expense. Or maybe one has to restate results (at least for MSFT) because their results do break out earnings with effect of ESOs.