[Am-info] Stock options and MSFT earnings

[John J. Urbaniak]

http://www.business2.com/articles/web/0,1653,37549,FF.html

" ... You can figure this stuff out for yourself by looking for the
Black-Scholes  calculations buried deep in company 10-K filings. Looking
at Microsoft's most recent 10-K, for example, we see that the company's
reported earnings of
$1.32 a share for fiscal 2001 would have fallen to 91 cents a share
after deducting the cost of options. "

================

Let's see, $1.32 - .91 = .41

.41 / .91 (the true value) = A 45 PERCENT DISCREPANCY in Microsoft's
reported earnings versus actual earnings.

And I bet if you go back to 1998 - 1999 - 2000, you will find even
higher discrepancies, approaching 100%.  I have been saying for some
time that if Microsoft paid no Federal income taxes those years, they
made no profit.


John