Microsoft Corp.

In spring 1999, Marta Fontanez had a new analyst with Capital Appreciation to make a recommendation to the Council on the investment value of Microsoft stock. She was concerned with the announcements of the Company zwischen 1997 and 1999. The quarter ended 30 June 1997, Microsoft announced that it will not buy back any shares, because his camp “price was a little high.” Not only that, Microsoft’s stock fall on the news, but the Dow Jones 130 points fainted. In subsequent … Read more »

In spring 1999, Marta Fontanez had a new analyst with Capital Appreciation to make a recommendation to the Council on the investment value of Microsoft stock. She was concerned with the announcements of the Company zwischen 1997 and 1999. The quarter ended 30 June 1997, Microsoft announced that it will not buy back any shares, because his camp “price was a little high.” Not only that, Microsoft’s stock fall on the news, but the Dow Jones 130 points fainted. In subsequent corporate versions of Microsoft Steve Ballmer repeatedly pointed out investors about the risks in Microsoft shares and the possibility that the security in 1998 and 1999 was overstated. Microsoft has publicly from above his camp, Shopping fewer shares on the open market than before, and experience severe levels of insider selling. Fontanez was also concerned with the value of the company since the effects of output options, and wondered if the market does not accurately calculate their costs. She needed to determine whether these actions Microsoft insiders’ superior information against the value of the company – and thus there would be a possible correction in the share price – or if the share price would continue to rise. Fontanez asked if Ballmer was right that Microsoft had simply too expensive to buy. Microsoft was finally at a loss how to invest his profits? Or was that stock a good buy?
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from
Mary E. Barth,
Carlos Schoenfeld
Source: Stanford Graduate School of Business
16 pages.
Release date: 01 April, 2000. Prod #: A174-PDF-ENG
Microsoft Corp. HBR case solution