Why would they buy at this level when they can buy below $25 or $22 or maybe even $20 if they do nothing and continue to let shareholder value erode... Would be very similar to what INTC did in the last 3 months...
MSFt has way more money in the bank, and it also has triple AAA credit rating, and most importantly, MSFt will make $5-8 billions of net profit each and every quater, regardless of the economy or anything else.
Remember, MSFt makes the most amount of money from Offcie and Servers and Tools, and these two divisions are growing nicely. Windows phones are picking up steam.
MSFt will slowly and surely get into harwares in a big way, so that it can increse windows total profitability, like APple has down to Imac and Ipads and so on. INtc is losing the batter in chips since it cannot supply low powered chips like ARM chips. The single fact that Win RT is going to branching out quickly can cauise a fetal blow to INTC, making intc sacred as hell. MSFt on the other hand is sound, unlike other PC makers.
SO, in summary, MSFt should on one hand pushing Win RT systems, and on the other hand buying the shares back like crasy when it is selling at a effective p/e of 5. Dividends cis not as effective as cuttign down the numbers of shares by 10-20%.
msft this quater will be selling so many millions of windows 8 to tablets and smartphones, that will make MSft Board so confident that The Board may acturally do an earth cracking buyback that will go to history book!!!!
about 10 years ago, MSFT did the largest special dividend in history, and a few years later, MSFT announced one of the largest stock buybacks valued at $40 billons!!! I hope they set another record soon!