What up. I know there are some pretty knowledgable stock people in here so I have a quick question. I received an email from the company that I purchase stocks through that Microsoft has issued a tender offer for the purchase of microsoft stocks. Apparently they are doing a corporate buy-back of microsoft shares. As some of you know microsoft has been going down recently since the announcement Bill Gates will be stepping aside.
The question I have is under what circumstances should I accept this offer. THe price range is 22.75-24.50 but microsoft is trading right now for 24.15. I was told by someone that usually when companies buy-back stock the stock will rise so I shouldn't accept this offer. I am leaning toward not taking it. After doing the math at the low end 22.75 I would break even but at the high end I would make a meager profit. But I don't buy and sell stocks everyday. I buy stocks strictly for long term investment so I am not necessarily looking to get out from microsoft unless this tender offer is a sign of bad things to come.
Any thoughts or suggestions would be helpful thanks.
The question I have is under what circumstances should I accept this offer. THe price range is 22.75-24.50 but microsoft is trading right now for 24.15. I was told by someone that usually when companies buy-back stock the stock will rise so I shouldn't accept this offer. I am leaning toward not taking it. After doing the math at the low end 22.75 I would break even but at the high end I would make a meager profit. But I don't buy and sell stocks everyday. I buy stocks strictly for long term investment so I am not necessarily looking to get out from microsoft unless this tender offer is a sign of bad things to come.
Any thoughts or suggestions would be helpful thanks.