Fascinating Letter To Microsoft Board of Directors
A major hedge fund (could it be David Einhorn?) has sent a letter to the Microsoft (MSFT) board of directors and published it anonymously. You can view the entire letter here and here is an excerpt: We are writing to recommend certain actions that the Board should seriously consider to significantly enhance shareholder value of Microsoft. Our funds have been a shareholder of Microsoft since 2006 and currently own over 11 million shares. Despite continuing robust revenue and EPS growth, Microsoft’s Read more [...]
Gold Soars Today
Why do we care about gold? We’re a dividend investing site. Well the long explanation can be read here, but I will recap the basic thesis. I believe that stocks are overvalued with regards to gold. I don’t know whether or not they are overvalued with regards to the dollar, because the dollar could just continue to lose ground and boost nominal stock prices. We believe that it makes sense to hold a significant chunk of gold and precious metals because of the macro economic environment. The macro Read more [...]
Tax Repatriation Holiday: Good For Shareholders, Not Economy
I’m a pro-growth, low-tax sort of fella, but I call ‘em as I see ‘em, and the politicians that are clamoring for a tax repatriation holiday in an effort to bring home the billions in cash sitting overseas on the balance sheets of US multi-nationals are wrong in that it will lead to more domestic investment and ultimately jobs. Jobs being the goal of any politician of course. The reality is that these multi-nationals have plenty of cash and even if they don’t, they have plenty of access to credit Read more [...]
Microsoft Getting Some Good Headlines
A Skype + Facebook partnership that will create more enhanced Skype capabilities inside of Facebook for its 750 million users is expected to be announced tomorrow. Skype of course pending completion of the acquisition is owned by Microsoft (MSFT). Moreover, Microsoft owns a small chunk of Facebook so this is a natural partnership. More capabilities inside of Facebook is important for the company to continue to grow and to increase the time that users already spend in the walled off garden Read more [...]
Market Update July 1, 2011
Markets are finishing up a giant week with huge gains throughout the week. Interestingly, today is also the first day after the conclusion of the Federal Reserve’s QE2 program. How does that fit? Well, the market has known the end of QE2 would be on June 30th for some time and therefore “priced in” or anticipated the move long ago. There was never going to be any major move the day after it concluded - that’s not how the market works. Now, the major catalyst for the move higher this Read more [...]