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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: manalagi who wrote (92315)	6/9/2010 9:30:34 PM
From: engineer	2 Recommendations Read Replies (2) \| Respond to of 196641

I wish I had recorded the CNBC channel this morning on their explanation of treating the shareholders right. Microsoft this AM, with $39B in cash, decided to take out $1.15B in bonds, so they started marketing the bonds to the public. The commentator remarked that this was a good use of finaicial engineering, as they could paytheir short term debt out of this bond holdings and cut downt he interest rate they paid. The other guy said that while this was nice, Microsoft was not particularly good at rewarding the shreholders. He compared Microsoft to Apple. Both have a close market cap, both have about the same cash on hand. But Apple had invested that cash in business which directly changed the bottom line, like PA semi for applications ASICS and instricty for ARM processors and also introduced new product lines like they were a startup to generate profits. Apple did not pay a dividend but haad grown the share value over 1000%. While MIcrosoft has maintained about a flat share price for the last 5 years, but paid a large dividend. So they talked alot abou twhich one had the best shareholder value. Clearly Apple won.......