Maybe I am making a mistake. How come Microsoft net income doubled from 8billion in 04 to 17.6 billion in 08 But shareholder equity went from 74billion down to 36.2 billion? What is happening to the shareholder equity? Diluted earnings per share in 08 was 1.87 compared to .75 in 04 The dividends do not account for this either. They collected 60 billion in revenue in 08 I am a bit confused what seems to be going on and why would I invest in MSFT. Seems like a bad deal. Anyhow am I looking at something wrong?
Over 100 billion in dividends have been paid out so far and their dividend increase each year by like 40%+. And over 30 billion in share buy backs are scheduled through 2011 and I can't keep track of how much they bought back so far. About 40% of my portfolio is in MSFT, at least it was true 2 weeks ago. I cashed out at the top and looking to get in again. I would be all over this stock at the $18 range.
I heard that the bonds are going to be used to help fund the purchase of SAP. But even with the bond money and cash equivalents its not enough unless they also plan to issue stock.