MSFT

[bigpooch]

Mister Softie: $53 billion in cash. Any recommendations?
PEG > 2.0, so it doesn't meet my arbitrary criteria, but
seems like management might be thinking of possible future
acquisitions.

[adios]

IMO MSFT ought to liquidate their positions in marketable debt securities and distribute ALL their cash as dividends and leverage themselves by issuing bonds and possibly preferred stock. I haven't done an in depth analysis as to exactly how I'd change the capital structure of MSFT but I would imagine that MSFT could easily have a debt to equity ratio of at least 1, probably much higher due to their monopoly status (or close to it). IMO MSFT's sub optimal capital structure will inhibit stock price appreciation for this company.

[detox]

What we will now see is MSFT raising their dividend at regular intervals so their employee owners keep the stock since it pays a nice return.

I expect MSFT to raise their current annual dividend to at least 1.0% very soon and I bet they double the current dividend sooner.