Does anyone have any thoughts about the Microsoft tender offer to buy back stock?

Question

Is it a good or bad idea for a small (200 shares) investor?

Answer 1

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There are two kinds of buy backs. The company can just cancel your stock and pay you the market value, or they can make an offer that is a percentage higher than market value.

If anyone sells the Microsoft stock; they need to have their head examined.

Answer 2

It's a good thing that MSFT is buying back its stock because it reduces the number of shares outstanding. It will keep the stock from falling below the price that it's buying back the stock for.

MSFT sent a form to shareholders offering to buy the stock "not greater than $24.75 nor less than $22.50 per share."

So if they buy up all the shares out there in that price range, who then would want to sell their shares for anything lower ... knowing that anyone buying shares would have to pay more (because of the law of supply & demand)?

Answer 3

It is a good idea. They know that the market will be down and if they buy shares back over the next eight months, they will get a very good bargain on their own stock. When the buyback program is over, the stock price will rise even higher than it normally would have after a correction.
It is a brilliant move, actually.

Answer 4

I don't like buybacks.
In most cases its to pump up the stocks. Benefits the Corporate officers.
Look up MSFT up in yahoo finance, then look up insider transactions. ( off to the left)
You'll see who's selling off their stocks. Non other than William Gates. ( and others) Bill sold off 218 million dollars worth in July alone. Tells me something is up with micro soft!!

Answer 5

Dont own the stock, but all I can say, its about time. To many MSFT shares outstanding.