Microsoft (MSFT): The Big Share Buy-Back In The Sky

Microsoft (MSFT) is going to buy back $20 billion of its shares. Take that to the bank. Maybe.

UBS says that investors should expect the move by the world’s largest software company soon. UBS says MSFT won’t even tell anyone until the purchases are over.

According to Bloomberg, UBS says “They won’t announce it until it’s done.”

The news service adds "A buyback of between $15 billion and $20 billion would lift earnings per share by as much as 10 cents annually."

Since there is very little hard evidence that share buy-backs help stock prices, the whole matter maybe a waste of money. For $20 billion, Microsoft could buy two solid companies like Salesforce (CRM).

Douglas A. McIntyre