SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: J. P. who wrote (14391)1/16/1999 3:12:00 PM
From: t2  Read Replies (1) | Respond to of 74651
 
JP, The ANTICIPATION of a split and the great earnings are worth $5 each
for a total of $10. This is why I probably won't need to hold on to the
February calls. For me an actual split is of no consequence. The stock has
gone up from about 85 since the start of MSFT's current fiscal period. They
grant options based upon the price on July 1/98 as I understand it. It is in
the interest of the company to keep control of the stock at this point. They
probably want a gradual move up until July 1/99 at which point they will be
alright with a sharp move up. The only problem with this thinking is that it
does not matter what MSFT wants it stock to trade at anymore. They have fooled
the investment company about its true worth many times before and I feels it is
unlikely they can accomplish it this time. I am expecting to hear a lot of warnings
from the CFO during the conference call. If the stock dips on Wednesday, I might
jump in to buy some more shares or Leaps.

I am having second thoughts on the fast move of the stock. If no split is announced
and the stock goes down somewhat, then they will announce a split to ensure
shareholders are happy.

It is just too unpredictable whether they want a fast rise in the stock to keep pace with
other tech companies. Maybe they want a sharp increase----it is hard to predict.
I have been flip flopping over this. However, this time they will not have as much
control over the price.