Comments on: Dividend theory at work, MSFT shareholders want their money back http://www.thomaspurves.com/2008/09/22/dividend-theory-at-work-msft-shareholders-want-their-money-back/ Wed, 25 Jan 2012 15:04:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Farhan Thawar http://www.thomaspurves.com/2008/09/22/dividend-theory-at-work-msft-shareholders-want-their-money-back/comment-page-1/#comment-12563 Farhan Thawar Tue, 23 Sep 2008 13:38:06 +0000 http://www.thomaspurves.com/?p=430#comment-12563 If this is the same as their other buybacks, the net # of shares will still be higher after the buyback due to the granting of shares (not options, but shares) to employees. Happened the last few buybacks, don't see why it wouldn't happen again. If this is the same as their other buybacks, the net # of shares will still be higher after the buyback due to the granting of shares (not options, but shares) to employees.

Happened the last few buybacks, don’t see why it wouldn’t happen again.

]]> By: Farhan Thawar http://www.thomaspurves.com/2008/09/22/dividend-theory-at-work-msft-shareholders-want-their-money-back/comment-page-1/#comment-44301 Farhan Thawar Tue, 23 Sep 2008 13:38:00 +0000 http://www.thomaspurves.com/?p=430#comment-44301 If this is the same as their other buybacks, the net # of shares will still be higher after the buyback due to the granting of shares (not options, but shares) to employees. Happened the last few buybacks, don't see why it wouldn't happen again. If this is the same as their other buybacks, the net # of shares will still be higher after the buyback due to the granting of shares (not options, but shares) to employees.

Happened the last few buybacks, don’t see why it wouldn’t happen again.

]]> By: Colin Henderson http://www.thomaspurves.com/2008/09/22/dividend-theory-at-work-msft-shareholders-want-their-money-back/comment-page-1/#comment-12560 Colin Henderson Tue, 23 Sep 2008 01:32:31 +0000 http://www.thomaspurves.com/?p=430#comment-12560 Typically a share buyback which takes publicly held shares and returns them to Treasury is a good thing by increasing EPS on the remaining publicly held shares. Treasury shares are technically not owned by anyone. However it is usually something done to return cash after a large sale for example. In this case, it appears it is being done because as you rightly suggest the company cannot use the cash effectively in any other way, so best investable use of cash is this. Typically a share buyback which takes publicly held shares and returns them to Treasury is a good thing by increasing EPS on the remaining publicly held shares. Treasury shares are technically not owned by anyone.

However it is usually something done to return cash after a large sale for example. In this case, it appears it is being done because as you rightly suggest the company cannot use the cash effectively in any other way, so best investable use of cash is this.

]]> By: Colin Henderson http://www.thomaspurves.com/2008/09/22/dividend-theory-at-work-msft-shareholders-want-their-money-back/comment-page-1/#comment-44300 Colin Henderson Tue, 23 Sep 2008 01:32:00 +0000 http://www.thomaspurves.com/?p=430#comment-44300 Typically a share buyback which takes publicly held shares and returns them to Treasury is a good thing by increasing EPS on the remaining publicly held shares. Treasury shares are technically not owned by anyone. However it is usually something done to return cash after a large sale for example. In this case, it appears it is being done because as you rightly suggest the company cannot use the cash effectively in any other way, so best investable use of cash is this. Typically a share buyback which takes publicly held shares and returns them to Treasury is a good thing by increasing EPS on the remaining publicly held shares. Treasury shares are technically not owned by anyone.

However it is usually something done to return cash after a large sale for example. In this case, it appears it is being done because as you rightly suggest the company cannot use the cash effectively in any other way, so best investable use of cash is this.

]]> By: Chris http://www.thomaspurves.com/2008/09/22/dividend-theory-at-work-msft-shareholders-want-their-money-back/comment-page-1/#comment-12559 Chris Mon, 22 Sep 2008 18:42:25 +0000 http://www.thomaspurves.com/?p=430#comment-12559 I wonder: how did they settle on $40B? Would they have gained the same 6.75B if they'd given back $30B? would they have gained additional value if they'd given back $50B? Given the economic hurtlocker that the US is in, I suspect any perception of putting money in people's hands is likely to be overvalued in the eyes of the receiver (ie the $300 gov't tax rebates earlier this year). I wonder: how did they settle on $40B? Would they have gained the same 6.75B if they’d given back $30B? would they have gained additional value if they’d given back $50B?

Given the economic hurtlocker that the US is in, I suspect any perception of putting money in people’s hands is likely to be overvalued in the eyes of the receiver (ie the $300 gov’t tax rebates earlier this year).

]]> By: Chris http://www.thomaspurves.com/2008/09/22/dividend-theory-at-work-msft-shareholders-want-their-money-back/comment-page-1/#comment-44299 Chris Mon, 22 Sep 2008 18:42:00 +0000 http://www.thomaspurves.com/?p=430#comment-44299 I wonder: how did they settle on $40B? Would they have gained the same 6.75B if they'd given back $30B? would they have gained additional value if they'd given back $50B? Given the economic hurtlocker that the US is in, I suspect any perception of putting money in people's hands is likely to be overvalued in the eyes of the receiver (ie the $300 gov't tax rebates earlier this year). I wonder: how did they settle on $40B? Would they have gained the same 6.75B if they’d given back $30B? would they have gained additional value if they’d given back $50B?

Given the economic hurtlocker that the US is in, I suspect any perception of putting money in people’s hands is likely to be overvalued in the eyes of the receiver (ie the $300 gov’t tax rebates earlier this year).

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