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


To: Richard Forsythe who wrote (17789)3/11/1999 8:35:00 PM
From: Teflon  Respond to of 74651
 
As I said, Richard,

I believe MSFT will make up the shortfall with true sales, and therefor will make their original revenue and earnings estimates without having to rely "investment income." They are setting an expectation that they can beat.

Great management at work...

Teflon



To: Richard Forsythe who wrote (17789)3/11/1999 8:36:00 PM
From: t2  Read Replies (1) | Respond to of 74651
 
I think the big investment income will be a quarterly occurance. Just look at the cash this company has. Probably bought a lot of junk bonds/ treasuries etc.
I think they might want to add this to every quarter!! Maybe they will tell us later.



To: Richard Forsythe who wrote (17789)3/11/1999 11:01:00 PM
From: blankmind  Respond to of 74651
 
Rich - MSFT has made 100's of investments in start ups, joint ventures, etc....

- Plus, MSFT sits on like $25 bill or so of cash

- Between the two, $400 mill is very doable.



To: Richard Forsythe who wrote (17789)3/12/1999 1:18:00 AM
From: RTev  Read Replies (1) | Respond to of 74651
 
What's investment income?

Microsoft has $8 billion in cash. The company's stock services department actively trades and invests much of that wad in the markets. They clearly did a good job this quarter.



To: Richard Forsythe who wrote (17789)3/12/1999 5:33:00 PM
From: Srini  Respond to of 74651
 
Richard: <<"investment income" >>

I am not certain about the numbers and this is purely speculative, but, assuming that Microsoft has a cash hoard of about $18 Billion, an 8% annual return on this (quite shabby by the standards of most SI investors) would translate to approximately $400 Million per quarter.
Srini.