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

To: DavidD who wrote (12787)	11/30/1998 1:42:00 AM
From: ed	Read Replies (2) \| Respond to of 74651

I do not think you have the right to ask this question.

To: DavidD who wrote (12787)	11/30/1998 7:51:00 AM
From: Reginald Middleton	Read Replies (1) \| Respond to of 74651

<I do: the put warrant program in effect has nothing to do with the puts issued as kickers in our case -- for starters, their is no cash outlay in the latter (duh!). No matter how you do the math, a price meltdown for MSFT would be a nuclear affair.> I just could not resist pointing this out to the thread. If there is no cash outlay how in the world do you buy the "puts issued as equity kickers"? Most institutions embed options in the bonds. The bonds are sold by the company to the funding institution at a relatively high risk so the deal is sweetened by the addition of equity options embbedded. If the bonds are embedded with options and the bonds are sold for cash, then there is a cash outlay for the options unless of course the price of the bonds have not been adjusted for the options - which would mean the company is basically giving the options away for free. Just so I don't get complaints of being off topic, MSFT did a similar deal last year when they issued their preferred stock offering with a guaranteed floor. The floor was funded by embedded options. The preferred deal was a very bad deal for the investor considering MSFT's outstanding common equity performance. Understanding the way options work is fundamental to having a discussion about options, epsecially if you are an "expert". Trying to be something that you are not, failing to register under a real, full name and attacking others with false info does not add value to this thread. <are you paid by MSFT to lurk on this thread?> No, I am not.