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How is it good or a measure of valuation that MSFT finds that its best returns are buying stock from Bill Gates, and paying out a measly .18 a share (2%). I find it a little disappointing that MSFT can't invest 40 Billion in cash in anything other than a stock that has had nearly a 0% return over a 5 year period. Not to mention the fact that it may have been a lot better to pay stockholders a large special dividend while taxes on dividends remain low.
MSFT's inability to diversify its earnings stream beyond Office and Windows is why it has been priced between 22 and 30 for the past 5 years. If they can't figure out a way to use their cash successfully, they are just a mature large cap stock that should be paying at least a 4% dividend, and remain priced at 11 times forward earnings.
And didn't HP just announce cutting 24K jobs last week?
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