|i've always been a value investor. price/book has always been a big deal to me. so when msft reaches book value or below, i would say accumulate.|
they'll probably offer a dividend to attract investors back so it should be a great stock at that time.
is book value $5-$7?
one thing msft could do to really screw everyone would be to trash their own stock, and use their existing cash to go short on everyone else.
so even though their own stock would crater, they would make a fortune off of their puts on the rest of the market.
so the process is to:
1) buy as many 'stealth puts' as they can
2) trigger some problem in their own stock and watch it crater.... make a bad earnings announcement or something.
again even as their own stock situation cratered, they would make a fortune off of their puts on the rest of the market.
that's the only thing they can do to avert a continued deterioration in their overall asset situation.
as it is their stock price will deflate in a more 'natural' fashion, over time. their cash hoard will shrink and if their paper investments are long on this market... watch out.
if just one major corporation with a cash hoard would use that to short everyone else, then somehow trigger continued selling overall, that company would make a lot of money right now.
but those companies that are using their cash to go long on the current market... that strategy's about to explode like a bouncing bettie... ouch.
let's get back to making products instead of reporting earnings largely inflated by market 'investments'.... what are some people calling microsoft now, 'mutualsoft?'
to be fair, msft isn't the only company doing this (going long with existing cash and getting 'earnings' out of it). intc comes to mind as well. i'm sure their are others.