But Mr. Einhorn, What About Microsoft Corporation (MSFT)?

Page 2 of 2
  • Oracle Corporation (NASDAQ:ORCL) is the third peer in this respectable group. The manufacturer of software for databases is sitting on $34 billion of cash, or $7 per share. On the one hand, Oracle is not an extreme example as Apple – ‘Only’ 20% of its share price is pure cash compared to over 30% in Apple. On the other hand though, Oracle seems to deploy its capital much more poorly than Apple. It’s always on a buying spree for expensive companies, it barely pays any dividend (a measly dividend yield of 0.7%) and it issues new shares at a staggering rate. Oracle practically begs for someone like Einhorn to act as the responsible adult around and transfer more of its cash to shareholders.
  • The Fool looks ahead

    It’s still fairly early to say whether Einhorn’s initiative will spark a vast cry against other companies to start returning more cash to their shareholders in the form of dividends. But I certainly believe that this move towards unlocking value via dividends is a blessed initiative to corporate America.

    The article But Mr. Einhorn, What About Microsoft? originally appeared on Fool.com and is written by Shmulik Karpf.

    Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

    Page 2 of 2