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Wednesday
Apr192006

Lots of Cash at Big Corporates

Found another interesting article by Eddy Elfenbein at US Market Blog.  This time he talks about cash levels at some of the US giants, in particular Microsoft (MSFT).   My motivation for owning many of the US huge multinations is their cash levels. Of course, I'm hoping they spend this cash on share buybacks (in excess of employee option and stock grants) and dividends.  I think Eddy and I both fear that it will be spent on stupid acquisitions. 

I must say one of my main motivations for buying Microsoft last year was their new found shareholder friendly attitude.  They cancelled the employee option plan and issued a dividend.

Disclosure:
I own Microsoft (MSFT) (half of position has Jan 2007 27 and 30 strike calls short against it)
I own Pfizer (PFE) mentioned in the Elfenbein article at US Market blog.
I own May 450 strike puts (a bet the stock will decline) on Google (GOOG) - this is also mentioned in the US Marketblog Article.

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