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

To: Bill Fischofer who wrote (9376)	7/16/1998 10:32:00 PM
From: Suresh	Read Replies (1) \| Respond to of 74651

Some Perspective MSFT is currently showing $13.9 billion in cash on their balance sheet. To give some perspective on what that means, consider that for all of 1997, only the top 98 companies on the Fortune 500 list did more than $13.9 billion in sales. MSFT's current on-hand cash is larger than last year's revenues for household names like Delta Air Lines, Time Warner, Goodyear Tire, and some 400 other Fortune 500 names. Some interesting facts; 1) Number of shared used for diluted earnings increased by 75 mil from Jun 30, 97 to Jun 30,98 2) Cash increased by 4.9 bil 3) Much hyped about 13 bil cash amounts to about $5/share (based on number of shares used to calculate diluted earnings) If they want to buy 75 mil shares in open market at current market price they have to fork approximately 8.7 billion (mind you this is just to account for the increase in options from 97). If these shares were purchased on the open market, MSFT was cash flow negative for the current year. Who say's dollar is the strongest currency in world? It is loosing big time to the nifty fifty companies paper(shares). I guess issuing another 75 mil shares won't budge the numbers all that much. -Suresh Disclosure: I am currently long MSFT.