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Re: Lessons from the Death of HD-DVD: Another Lethal Wound for Microsoft's Dying Empire

On Sat, 23 Feb 2008 03:45:16 +0000, Roy Schestowitz wrote:

> Steve Ballmer has deep pockets. Bill Gates has deep pockets. Many ex-Softies
> are millionaires. But they won't donate their assets and saving to Microsoft
> if it operated at a loss and buys its own stock.

You seem to be competely lost about what a stock buyback is for.  You seem
to see it as a negative, when in fact it's nothing of the sort.  Microsoft
buys back it's stock to reduce dillution of it's stock, improving the stock
value in the process.  Because microsoft gives out so many stock options to
it's employees, it's forced to periodically buy back stock to prevent them
from having to issue more, and dillute the pool.

This is common practice, and you typically see stock buybacks when a
companies stock is lower than normal.

Further, Microsoft is *NOT* operating a loss, unless you consider profits
of BILLIONS of dollars a quarter a loss.

While it may be true that Microsoft may have to borrow money to buy Yahoo,
at the profit level they have, they'll pay off that loan in less than 6
months.  What's more, the only reason for the loan is so they don't have to
deplete their cash reserves.

Why do you keep saying Microsoft is operating at a loss when they are not?

How about an answer Roy?  Why are you saying something that is patently
untrue?

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