Tender Offer From Microsoft

Temujin

Rising Star
BGOL Investor
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.
 
Buy MSFT but be prepared to hold it through turbulent times. They've got an iPod killer soon to be released, and xBox nocked PSP off the video game perch. 80% of the worlds pcs are powered by Youhnowwhat. Yeah that's right, buy the darn it and fuggitaboutit! MSFT is everywhere.
 
Temujin said:
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.
I remember when it was $112 per share and Microsoft was everywhere then... How much are you going to risk??? How many shares and for how long? " LICK " :cool:
 
Lick said:
I remember when it was $112 per share and Microsoft was everywhere then... How much are you going to risk??? How many shares and for how long? " LICK " :cool:


I already have about 3k of microsoft. I guess from what you guys are saying I should hold onto it and get some more while it's low. I am an amateur stock investor so I didn't know the impact of the tender offer. I am looking to acquire and build stock holdings for the next 20 years so I am looking at long term medium risk investments until my portfolio gets big enough to be professionally managed. Thanks
 
Temujin said:
I already have about 3k of microsoft. I guess from what you guys are saying I should hold onto it and get some more while it's low. I am an amateur stock investor so I didn't know the impact of the tender offer. I am looking to acquire and build stock holdings for the next 20 years so I am looking at long term medium risk investments until my portfolio gets big enough to be professionally managed. Thanks
I was doing 3 to 5% of investing funds into the market. After the boom in the late 90’s what is doing very well for me now is; WMT, WM, WDC, DELL, AIG, CVX. I still have GTW, NOVL, SUNW that have rebounded. I have not from the last three.
Stay up! “ LICK ”
:cool:
 
I sold msft recently for a loss at 23.55. It's true stocks go up on corporate buybacks but if msft announced the buyback already its probably already priced into the stock. I don't know what to think about where msft is headed. I like msft but by the way the stock has been performing I must be the only one. I got out because I didn't like how the stock was performing i.e. down almost every day for no damn reason.
 
Bill Gates is retiring, and google is set to introduce a word processor to rival microsoft word. Other competitors are getting ready to enter the market also. However Microsoft is still strong financially. I have Microsoft stock in my portfolio for long term investing purposes.
 
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