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

To: Earlie who wrote (51294)	3/10/1999 9:29:00 PM
From: Pierre	Read Replies (1) \| Respond to of 132070

Please do.

To: Earlie who wrote (51294)	3/10/1999 10:07:00 PM
From: Eggolas Moria	Read Replies (2) \| Respond to of 132070

Faber on CNBC: (WSJ Interactive) Yesterday in a report paid scant attention by the market, SG Cowen trotted out a proprietary survey showing PC spending would be down 2% year over year. It downgraded Dell as a result. Of course it was Dell that began a somewhat difficult time for the box makers when it reported a 38% increase in revenues for the fourth quarter. Good, but not as much as expected. Keep in mind however, that Dell's stock is still up nicely on the year, something that can't be said for Compaq. And at least one money manager sees some troubling signs in many tech stocks' recent action:" Richard Hoey, chief economist and director of equity of Dreyfus Corp.: "One striking thing that you've seen in the market recently, even though the market averages are right up there at the highs: notice how many technology stocks are not making new highs any more. You don't see Compaq on a new-high list, you don't see Dell on a new-high list, you don't see Amazon on a new-high list." Faber: "And you may not see Compaq there either for at least the next few months."

To: Earlie who wrote (51294)	3/11/1999 1:10:00 AM
From: cfimx	Read Replies (4) \| Respond to of 132070

Here's a mouthful: >>explaining how Microsoft adds billions of dollars to its cash hoard hoard through the exploitation of an arcane tax loophole relating to its excessive use of employee options.<< 1) Is this REALLY exploitation? What or who is being exploited? Don't most companies grant options and take a tax credit when their shares rise? If so, why pick on MSFT? Are the rules really ARCANE, or do people just not care? You aren't suggesting that MSFT alone benefits from this "loophole" are you? Is it really a loophole, or is it just the current law? By what or whose standard are the options granted by MSFT "excessive?" 2) Did you know that the SEC required, beginning in fiscal 1997, that all public companies in the notes to Financial Statements, offer an alternative income statement for readers? This alternate income statement is designed to show what the effect on reported income would be IF companies were required to report option grants as a compensation expense. Every company has one of these in the back of the 10K. 3) Did you also know, that before this became a requirement courtesy of the SEC, MSFT was one of the only companies I am aware of that fully disclosed its option program by going above and beyond existing SEC requirements? The company in fact provided, in its prior annual reports, an ALTERNATIVE "look through" income statement showing the effects its option program would have on reported net income, were it required to report this form of compensation as income. Who needs da SEC anyway? 4) Here is the link to the MSFT alternative income statement for f1998. You will see that net income would have been reduced from $1.67 to $1.47 were MSFT required, which they aren't by the way, to report options as a compensation expense on the income statement. This is quite similar to many companies alternative earnings btw (get a load of sunw). This is hardly the calamity the alarmist, Mr. Parish, portrays. microsoft.com Is it any wonder that Mr. Parrish is being ignored, save for a tiny paper in Oregon? PS: here is a riddle for you. In what way does the most pristine and fortress like balance sheet on this or any earth, resemble the sordid financial structure of LTCM or any other hedge fund? The correct answer lands you in NIRVANA.