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

To: ToySoldier who wrote (12503)	11/23/1998 11:15:00 AM
From: KM	Read Replies (1) \| Respond to of 74651

You obviously haven't been watching the trading in MSFT. Heavy accumulation, large blocks.

To: ToySoldier who wrote (12503)	11/23/1998 12:28:00 PM
From: DavidD	Read Replies (2) \| Respond to of 74651

MSFT has an off-balance sheet liability = 1/3 of their net worth, according to the NY Times. "In notes to its financial statements, Microsoft said it had 75 million put warrants outstanding on Sept. 30. They expire between March 1999 and September 2001 and have strike prices between $76 and $88 a share. "Taking the average of the two prices, if the company had to buy back all the stock covered by these warrants, it would spend more than $6 billion. That is about one-third of Microsoft's net worth (or shareholders equity) of $19 billion." Section 3, page 1, 11/22/98 - NYT In other words, if MSFT stock falls below $88 anytime soon, people will start putting those warrants back to MSFT for cash. At $76, the whole liability can be put to MSFT.