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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (43120)	1/13/1999 11:30:00 AM
From: yard_man	Read Replies (2) \| Respond to of 132070

Do you know what deep-in-the money means? Do you know how MSFTs put warrants sale work? We had some relevant posts here awhile back. Go back and read them -- there is a quote from MSFTs CFO on the matter. MSFTs put warrants are great in a bull market, but will cause a forced dilution of the float if there is a BK. Something you might want to keep in mind if you are long. In essence MSFT is betting your money as a shareholder that the stock will trade above a certain price for a certain amount of time. It's been a good bet so far ...

To: gbh who wrote (43120)	1/13/1999 11:40:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

gbh, they do not sell puts. They sell put warrants. Different game. They do this at tops and as a scam way to buy back stock for their employee pay flim flam. Is it good for shareholders in a manic bull market? Sure. Most of these reckless leveraging tricks are. Is it deadly in a down market? You betcha. Will there ever be another down market? Probably not. <G> At least you have to hope that these folks who gamble with other people's money don't ever kill their suckers, er, shareholders in a collapse. BTW, this is a much lower risk for a price gouging monopoly like MSFT than for other cos. I jsut find it funny that none of these scams were going on at the bottom. The stock price is only a sure thing at tops. <G> MB