On 5/27/05, Kwang Suh <[EMAIL PROTECTED]> wrote: > >On 5/27/05, Vince Bonfanti <[EMAIL PROTECTED]> wrote: > >> MS's cash reserves have dropped from 60 to 30 billion because they've been > >> giving it their stockholders as dividends, > > > >To try to stimulate growth because they have none. > > How does giving dividends to shareholders stimulate growth? > > MS shareholders have been clamoring for _years_ to have the share dividend > raised.
You just answered your own question. If you pay more dividends, more people buy the stock, more people buying your stock == higher stock value == growth > > > > >> not because they're losing money > > > >Thing happen with companies before they start to lose money (as you > >know) - they are trying like mad to keep it from happening, but a > >stalled stock is often a sign of bad things to come. And depending on > >how you look at it, not gaining is losing. > > Looking at the short term stock price as a gauge of company health is invalid. Why? And what is "short term" is 3 years too short? -- ~Blog~ http://www.robrohan.com ~The cfml plug-in for eclipse~ http://cfeclipse.tigris.org ~open source xslt IDE~ http://treebeard.sourceforge.net ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Logware (www.logware.us): a new and convenient web-based time tracking application. Start tracking and documenting hours spent on a project or with a client with Logware today. Try it for free with a 15 day trial account. http://www.houseoffusion.com/banners/view.cfm?bannerid=67 Message: http://www.houseoffusion.com/lists.cfm/link=i:4:207926 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/4 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:4 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.4 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
