Come On Steve

I owned Microsoft for a brief period at the beginning of 2009 with the stock in the teens. I remeber listening in on a conference call where Steve Ballmer said that he wants to preserve cash for opportunities and not buy back stock, even though Microsoft had 10's of billions of cash on their balance sheet. The stock went as low as $15 and Steve Ballmer preserved his cash. This quarter when the stock averaged about $28 Microsoft spent nearly $4 billion on buybacks.

I'm not saying that the stock is not worth $28 because I actually think the current price is reasonable. But why does he think its a buy now and it wasn't at nearly half the price? The skills necessary to operate a company and manage money are completely different. But CEOs are given the power to do both.

4 comments:

Anonymous said...

Because he tried to buy YHOO that's why and now he realizes he can't

Tsachy Mishal said...

This is not the first time Ballmer refused to buy at lower prices than later decided to buy at higher prices.

Anonymous said...

i never thought the guy was as capable as bill. vista, 07, loss to mac, goog, firefox. xbox was the last good thing coming out of this company and that was with bill. msft is a non event now. a relic of the go go days

Onlooker said...

They almost all do this. They're good indicators to fade.