Ballmer unloads more Microsoft stock

Discussion in 'Mac Help/Tips' started by matthew24, May 30, 2003.

  1. matthew24 macrumors 6502

    matthew24

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    Netherlands
  2. Foxer macrumors 65816

    Foxer

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    #2
    420 million shares of MS! After selling another 50 million this year. I knew he had a great deal, but jeez!

    So I guess his total value has fallen a little since MS stock peaked in 1999:D. by about $63 billion.

    How much stock has MS issued? If Ballmer has 420 million shares, what percentage of the compnay does he own. i guess I could check out their site.
     
  3. Foxer macrumors 65816

    Foxer

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    #3
    Ok. I've answered my own question.

    From the MS website: As of December 31, 2002 there were 10,701,385,302 shares of Microsoft common stock outstanding.

    However, there was a 2 for 1 split since then, so there should be roughly twice that number now. So if there are 20 billion shares and balmer owns 200 million, that's 1/10 of 1%. Hardly a controlling interest. The fact that there was a split this year also means that he hasn't lost $63 billion in value. More like $32 billion.

    FYI - Gates owns 11.6% of the outstanding shares - about $31 billion.

    I did find this though, on MS's thrid quarter 10-Q submission to the SEC. Describing the various sectors of MS's business and how they view the world:

    "Competition. The Company continues to experience intensive competition across all markets for its products and services. These competitive pressures may result in decreased sales volumes, price reductions, and/or increased operating costs such as marketing and sales incentives, resulting in lower revenues, gross margins and operating income."

    Intense competition? In the field of Operating systems and Office productivity software?
     
  4. patrick0brien macrumors 68040

    patrick0brien

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    #4
    -Foxer

    They're likely saying it that way to keep the DOJ off their back. Sort of taking the competition in XBox, WinCE and the other markets not under MS's thumb and fudging it to cover "all markets". They are getting killed in game consoles.
     
  5. Foxer macrumors 65816

    Foxer

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    #5
    All true. All ture.
     
  6. NavyIntel007 macrumors 65816

    NavyIntel007

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    #6
    Does anyone find it a little odd that Mr. Balmer is pulling a big chunk of change from microsoft? I hate to say it but why would you sell microsoft at $24 a share especially when it has a dividend? If he kept the 51 million shares he would make $4.08 million in dividends. True, that's probably chump change to this guy but I'm raising an eyebrow considering it's pretty close to the end of the quarter.

    Alright, I'm going to quit emplying and just come right out and say it....

    INSIDER TRADING

    There, I feel much better now :D :cool:
     
  7. gwangung macrumors 65816

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    #7
    Actually, since Ballmer has NEVER sold his stock before, it's not that surprising that he'd do it. For sure, he's probably used it as collateral for loans, but at some point he had to go and sell his stock to cash in....
     
  8. NavyIntel007 macrumors 65816

    NavyIntel007

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    #8
    The guy has more money than God (but less than Bill Gates). He doesn't need to sell any of it. You have to note that the Microsoft stock has a dividend of .08 a share. This means with the Full 420 million shares he owns he makes $33.6 million a year on top of whatever salary and other profit sharing he probably gets. Besides the fact that Microsoft is very low compared to where it was 5 years ago, why would you sell any of it if you could at least double your money? Either he's really stupid (i.e. has no money sense, although who needs it when you are uber-rich) or he knows something has run fowl in Redmond.

    I wonder how Apple would fare if Microsoft turned out to be the next Enron? :)
     
  9. patrick0brien macrumors 68040

    patrick0brien

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    #9
    -NavyIntel007

    Probably get sucked in with the undertow.

    Regardless of what one thinks of MS business practices, that would be awful in so many ways.

    We would probably be talking about the U.S. entering an economic Depression if that were to occur in times like these.

    The Four Horsemen of Economic Depression:
    1. Falling Incomes
    2. High Inventories
    3. Deflation
    4. Financial Collapse

    In the U.S. we currently are experiencing 1 and 2, and are very close to 3. The only missing piece is 4, and an 'Enron'ing of MS would probably bring that about.
     
  10. jxyama macrumors 68040

    jxyama

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    #10
    hmm... i thought M$ never gave out dividends, but i guess times have changed... could it be dividends for pref. stocks or does M$ have no pref. stock?

    just being ignorant...
     
  11. NavyIntel007 macrumors 65816

    NavyIntel007

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    #11
    I'm not so sure about that. Apple would fair pretty well. Gateway would go under. HP and Dell would scramble to push linux desktops.

    Maybe saying they will be like Enron is a little much... but suppose they are like KMart, USAir?

    Supposedly, they are bleeding cash from the MSN, Xbox division and WinCE. International seems to be looking away from Microsoft especially in the EU where it seems like they are the only countries that aren't completely blind to what MS is trying to do. I don't really know about hardware sales but Keyboards can't be what MS's finances hinge on.

    MS basically makes boat loads on Office, XP and other business applications. It won't be that way forever and when the downturn comes so will MS's smaller pet projects.
     
  12. patrick0brien macrumors 68040

    patrick0brien

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    #12
    -NavyIntel007

    Ok. I see where you are going and I agree. They do need a serious humbling, but let's hope thats with a gradual decline, and not the implosion that Enron was.
     

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