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To: SPEEDRACER who wrote (18175)	6/20/1998 3:22:00 PM
From: Zeev Hed	Respond to of 25960

Speedy, I do not see that top in MSFT. Right now they seems charged to just go ahead and make a new high during the summer rally that is upon us soon. Mind you I am not saying MSFT is a "good value", but then neither is YHOO and it is poised to make new highs as well. Zeev

To: SPEEDRACER who wrote (18175)	6/20/1998 6:11:00 PM
From: Elroy Jetson	Respond to of 25960

The Microsoft "stock option liability" is one of the primary reasons that MSFT is always so expensive and declines very little in market down-drafts. The other reason is that a large percentage of the company is owned Bill Gates and other officers. The upshot of this is there is very little stock available for sale, and the employee stock program provides a steady demand for MSFT stock. Companies like this do have a problem with employee compensation if they stop growing. Wal-Mart had this problem once there was a Wal-Mart in most places in the US. Then they found new markets to expand into and they don't have a problem anymore - and the stock is once again on the rise.

To: SPEEDRACER who wrote (18175)	6/20/1998 11:19:00 PM
From: MtnMan	Read Replies (1) \| Respond to of 25960

They have a 23 billion... Yes BILLION.$ stock option liability that has been hidden from expenses on their income statement. So Speedy, if they have granted options to employees, and the employees excercise their options, don't they have to pay (the price of the option) MSFT for the stock? So MSFT just issues some more paper .... MSFT doesn't OWE anybody 23B, do they? How much treasury stock to they carry on books? I guess if they have to buy the stock on the open market and sell it to the emps for a big discount they loose money, but if they just issue more paper it seems the people who take it in the shorts are the current holders because of dilution... -Neal