CrossingWallStreet.com: At Least Microsoft Thinks Microsoft is Cheap
Of course, there’s the question of should a company be trying to make money by shifting pieces of paper around. As David Merkel says, “Why pay money for financial engineering? Better you should look for genuine organic growth.” He’s got a good point. When I invest in a company I want them to do what they do best. Let me worry about if their stock is a good buy or not.
Since FY 2006, Microsoft has spent over $78 billion on share buybacks and the stock has done nothing but go down. The company is currently in the middle of a $40 billion buyback program that runs through 2013.
The other option is for Microsoft to spend its cash on acquisitions. Still, we’re back to the company being a money manager more than a software firm. To quote Biggie Smalls, “Mo Money, Mo Problems.”
