Jared

Ford's Stock Issue Makes More Sense than Microsoft's Bond

Wow! Where does Seeking Alpha find these guys? Did the auther ever take a basic corporate finance course? Has he ever heard of weighted average cost of capital?

It makes absolutely perfect sense for Microsoft to do this. It's growth curve is clearly not as vertical as it once was. This is what maturing companies do to lower their cost of capital. It's a boon to equity owners.

There was an unmistakable signal from the U.S bond auction last Thursday. The rates have bottomed out. They are going higher from here. It is last call for those who have the desire and ability to secure debt on the cheap. The train is leaving the station.

Bravo to Microsoft! It was an excellent move.

This Week's Key Earnings Reports

Ummmm, Bank of America, anyone? Hello? It's hard to believe BAC won't be as closely watched as WB or AAPL.