[Am-info] Fool's selling Microsoft stock

[John J. Urbaniak]

As I posted here last week, for FY 2001, Microsoft overstated the company's
profits by 45% or about 2.5 BILLION dollars due to stock options.  No wonder the
Motley Fool dumped them.

First will come the employee's lawsuits, then the shareholder's lawsuits, then
Microsoft's cash hoard will be gone.

John



Joe Moore wrote:

> Microsoft (MSFT) is being removed from The Motley Fool's "rule-maker"
> portfolio of companies.
>
> http://www.fool.com/portfolios/RuleMaker/2002/rulemaker020731.htm
>
> Interesting reasons:
> > It all comes down to an issue of character. In this case the company has
> > failed to maintain the best interests of outside shareowners. By declining
> > to show true leadership on the stock option expensing issue -- which
> > management claims to agree with -- Microsoft no longer meets the criteria
> > of a Rule Maker company.
>
> -------
> > We've known for years that Microsoft was a serial user of various accounting
> > tricks to "groom" earnings, including delaying revenues for use in later
> > quarters.
>
> ------
> > Microsoft had the opportunity to show true leadership, and it declined.
>
> --Joe
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