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[Christoff Yurievich]

So I got a thing in the mail about my stock in the company. Specifically, it's asking me if I want to participate in a tender offer/dutch auction to sell my common stock back to the company. The numbers are $0.00000625 par value per share, and at a price not to exceed $24.75 or less than $22.50 a share. Right now, the stock is at $24.06.

Two questions: do I do this? and what the hell is it asking? Thanks.

 

[onion_pixy]

Two questions: do I do this? and what the hell is it asking? Thanks.

well, I won't tell you if you should do this.. But I can tell you why.

msft is buying back stock. When company buys back its stock, retires those shares, so theres less over all shares outstanding. That increases the value of each share, since the shares are less diluted. A company usualy buys back shares when it wants to increase the value of the sahres, but investing in itself isn't worth it. In other words, microsoft is sitting on a huge pile of cash, and has proven it's not very good at spending money to make money (R&D) so it's buying back shares instead of investing in it self.

 

[Christoff Yurievich]

oh, ok. So if I keep my shares, they might go up? thanks.

 

[tegdf]

MS stock has sucked the last couple of months

 

[onion_pixy]

oh, ok. So if I keep my shares, they might go up? thanks.

um, sure they might. They might go down too. It's not an easy question to answer, I mean if forecasting the stock market was so easy we'd have a lot more rich people.

 

[Christoff Yurievich]

well yeah, that's why I said "might". :lol

to give you an example, I own many (too many, it can be said) shares of Delphi. I'm sticking with them, just in case.