If you look at the insider sales at Google, there has been billions of stock dumped. Hey, I would too if I had cheap stock in Google.
As for Microsoft, it is doing just the opposite. It wants to buy back $40 billion of its stock.
Of course, this is no simple matter of, say, calling up a broker to make some trades. Rather, Microsoft had to do a so-called Dutch auction. Interesting enough, the company could not find many sellers of the stock (only about $3.8 billion at current prices). Basically, investors think there is upside with Microsoft.
Yet, Microsoft still needs to buy back this stock. In other words, we are likely to see a boost in the stock price. Also, as stock comes off the market, this helps boost earnings per share.
Something else about the lack of selling interest: this is a good sign that Microsoft's stock is at a support level. After all, it seems like much of the bad news is factored into the stock, such as its lagging performance against Google, as well as the delays with Vista.
Cramer on BloggingStocks: This bullish retail story looks like a good fit 
Top growth fund manager sours on Apple, U.S. tech
New Facebook share structure hints at IPO
Reader Comments (Page 1 of 1)
8-18-2006 @ 1:20PM
edward humphreys said...
why doesn't microsoft buy at market like we have to do. Bill sold high, depressed stock price & now is buying back low. manipulation or buying the pot.
8-18-2006 @ 8:50PM
Gordon said...
Those that did or will decide to sell MSFT are those that bought low and this may make sense to them. Not me,bought around 27 and will sell when I feel right about it. It is undervalued at 27 and that why I bought it. Have to stay the course. Gordon Ashford,CT
8-21-2006 @ 3:45PM
Bertha said...
This offer really confused me, at first. But then I realized that, being at such an undervalued price, MSFT wants to get back the stock before it goes any higher and it will. I'm hanging onto my shares. I may think about selling when they hit the $35.00 price. I have been buying and selling since MSFT went public and have done really well with my shares.