--The Economist, 1999
"Another Year Older, A Little Deeper In Debt," says Pogson's headline regarding Microsoft's debt. He too suspects that Microsoft is not telling the whole truth about its financial situation (which it paid its former CFO not to talk about).
M$ is increasing it dividend to shareholders and paying for it with an issue of long-term notes. To pay some of them back they will have to be in business for another 30 years. Do you feel lucky, punk? I would not count on a company with decreasing share and being hated by many customers being in business that long, would you? This could be a high-class Ponzi scheme. Why is a company awash in cash and taking in $billions in sales borrowing money?
FINALLY: Microsoft Just Stopped Pretending It’s A Growth Company
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Microsoft’s after-market announcement of a 23 percent dividend increase, bringing its quarterly payout to $0.16 per share (a yield of about 2.5 percent), is the next step in a transition I first began to notice this July at the company’s annual meeting for financial analysts.
For most of its history, Microsoft has tried to present itself as a growth company. The market clearly disagrees—the company’s P/E ratio sits at less than 12 this morning, which is more typical of a value company than a booming tech company with huge future growth potential.
Microsoft finally appears to be coming around to this point of view itself.