Discussion in 'Politics & Religion' started by newestmember, Feb 22, 2004.
A preliminary headline at Drudge....anyone heard anything more?
All my MSFT contacts are offline.
there were rumors msft would bid on disney last week.
HELL we got RALPH NADER IN THE RACE.....LOL ......this one is sure gona piss off the Democrates.....Nader helped BUSH win last election........watch the markets react to this....LOL
Nader is still pissed at the way that the Dems (Gore) treated him in the last election. He scheduled a meeting, called Gore's office in person to ask him to appear and speak. Gore never even called him back. Big Mistake. I think Nader will continue to bury the democrates until one of them gets smart and asks him what he wants. Best To All, Steve46
barrons this weekend had a writeup about how much cash msft has and the possibility of them somehow returning the money to shareholders.
Summary of Barron's article.
Possible cash distribution plans:
- payout dividend of 60 cents/shr raising yield to 2.2%.
- Dutch-auction tender for 1 billion shares at $30. This alone would increase EPS by about 5%.
- Company says "only a matter of time before it embarks on a distribution strategy."
- will have over $100B in cash by end of decade if no increase in distribution to shareholders.
- company admits potential EU fine shouldn't be an obstacle to returning cash (to shareholders).
- some believe Gates is behind company's desire to hoard cash.
- "Microsoft requires minimal capital expenditures to grow because their principal costs - R&D and marketing - are expensed. (Therefore), all of Microsoft's earnings are discretionary, distributable cash flow."
- earnings understate the profitability of core software business due to losses from several divisions including XBOX.
- MSFT attractive at 18 to 19 times free cash flow.
- "Sooner or later, Microsoft will find a way to get more cash into shareholder's hands. When that happens, the stock is apt to be appreciably higher."
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