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

To: t2 who wrote (17952)	3/13/1999 2:52:00 PM
From: blankmind	Read Replies (3) \| Respond to of 74651

Microsoft is making millions of $$'s on selling put options - on its own stock. Is this legal? Comes out to around $700 million a year in pure profit by selling these puts. From the 10Q: "To enhance its stock repurchase program, Microsoft sells put warrants to independent third parties. These put warrants entitle the holders to sell shares of Microsoft common stock to the Company on certain dates at specified prices, and permit a net-share settlement at the Company's option. On December 31, 1998, 75 million warrants were outstanding."

To: t2 who wrote (17952)	3/13/1999 2:59:00 PM
From: Sonki	Respond to of 74651

t2k, r u still holding april calls? here's some news that might help.. Credit Suisse First Boston analyst Michael Kwatinetz said he reiterated MICROSOFT CORP with a strong buy rating. Raising second half 1999 EPS estimate to $2.65 from $2.60. Leaving 3Q estimate unchanged at $0.65, as expected investment income will likely offset a $380 mln revenue shift. Increasing fourth quarter estimates to $0.74 from $0.66, based upon revenue shift. PC demand is solid. (Reuters 08:55 AM ET 03/12/99) * MICROSOFT CORP COO Bob Herbold said Friday the software giant planned to announce a corporate reorganization in the "near future." Herbold, in response to a question at a special shareholders meeting, declined to give details about the long-expected reorganization other than to say that Microsoft is "good at reorganizing." Shareholders at the meeting overwhelmingly approved a measure increasing the number of authorized shares outstanding to pave the way for a planned stock split. The Wall Street Journal reported Friday that the reorganization plan would be unveiled next week and would involve splitting the company into four major groups. (Reuters 11:59 AM ET 03/12/99) For the full text story, see