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

To: DavidD who wrote (12816)	11/30/1998 3:41:00 PM
From: Reginald Middleton	Respond to of 74651

<Equity kickers in the form of warrants are calls, not puts. (How can a put be a kicker - simple typo - but you bought it...)> Your mistake, not mine. If you look back at my post, you will see I was careful to quote "" your put statement. <Nonetheless there is no cash outlay (excpet transaction costs) for the company to issue them, or to deliver shares in the event they are called.> You've got to make up your mind which perpsective you are coming from. Regardless of which, the company that issues the warrants does so at the expense of recieving more outright cash from the funder. This is in essence a cash outlay (or to be more precise, giving up the cash), eventhough I think you know that I was discussing another perspective. Since it seems you know it all and are just trying to be difficult, I won't get into a common sense lesson here and will keep it simple, and polite. You are wrong. MSFT has to buy shares on a regular basis, at price floors set by the strike prices of thier ESO program. The warrant program funds those ESO liabilities and in a worst case scenario, provide shares for the treasury and the compenation program, and in a best case scenario provide excess cash. I have said this too many different ways for you not to get it, unless you are simply trying to argue for arguments sake. You act as if MSFT will be going out of their way to buy the stock if the warrants are excerised. They also have the option of settling in cash or stock (which can come out of the treasury), if I am not mistaken (no moola). For someone who is allegedely in the business, you are having a tough time understanding this. This is the end of this dialog from my perspective. Other topics, anyone?