Sinister Midget wrote:
> On 2006-12-07, Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> posted something concerning:
>
> > Commentary: Microsoft needs more than just buybacks to lift its shares
> >
> > ,----[ Quote ]
> >| Microsoft shares, which have been dormant for the last few years,
> >| have been looking up over the last couple months. The Dow industrials
> >| component has gained about 20% since hitting a 4-year low of $21.46 o
> >| June 13.
> >|
> >| To help move things along, Microsoft not only launched a $40 billion
> >| stock repurchase program that lasts through 2011, the company also said
> >| its previously announced 4-year, $30 billion stock buyback program was
> >| completed in just 2 years.
> > `----
> >
> > http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B685EFB89%2D5791%2D4E8B%2DAD6A%2D9688F5B6012A%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo
>
> This is clearly untrue. MIDL swears (and he should know, being an
> expert and all) that MS doesn't need to buy back stock to do anything
> like support the price. Not even to prevent panic and a major selloff
> (if such a silly notion was even possible - this is MS stock, fer
> crissakes!) The whole world is clamoring to own a piece of that
> performance pie.
>
> If anything, MS should sell off as much stock as possible to keep from
> pricing the world out of the market.
It may not be easy for you but try not to be so dense.
Yes, Microsoft is doing a stock buy-back. But look at the Fortune-500
companies and you'll see that a very large percentage of them have also
done a stock buy-back program in the last couple of years. A stock
buy-back program is nothing new. It's been going on forever and will
continue to go on forever.
GE did a $15 Billion stock buyback. Is GE in trouble? Are they
artificially keeping their stock price up? How about IBM who also spent
Billions of $$$ buying back their shares. Is IBM also dying and doing
this to prop up their share price? Then there's Exxon Mobil - The
company who made a $13 Billion dollar PROFIT in just 3 months. They
bought $23 Billion worth of their own stock in a *single year.*
According to you and Roy, Exxon Mobil must be crumbling because they
are doing this to artificially prop up their share price. Exxon Mobil
bought $23 Billion of it's own shares in just the past year. MS plans
on buying $40 billion over the next 5 years. Wow.. all these companies
must really be in big trouble. Yeah, right.
Once again, you and Roy are clueless idiots when it comes to financial
matters. And it shows.
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