Hedge fund manager who called for Ballmer to step down buys more shares in Microsoft

The hedge fund manager who back in May called for Ballmer’s removal from the CEO position at Microsoft, has now purchased more shares in the company.

David Einhorn, the hedge fund manager who publicly called out Steve Ballmer, has now reverted course and purchased more shares of the company. According to the Seattle Times, Einhorn's Greenlight Capital increased its shares in the company from 9.1 million to 14.8 million shares as of June 30th.

For a manager who does not believe that Ballmer is doing a good job, the additional purchases seem to indicate that maybe David is biting his tongue. In May, Einhorn scolded Ballmer by saying that he is the reason that Microsoft’s stock is doing so poorly.

It could be that Einhorn sees the value of Microsoft’s upcoming Windows 8 launch. Also, with Nokia now landing a deal to sell Windows Phone devices on China Mobile, Microsoft has a lot going for it at this time.

While it is true that Microsoft has not experienced rapid gains on its stock performance over the ten years of the Ballmer reign, the company has had many notable product launches. If Microsoft can propel Windows Phone and regain significant market share, Microsoft’s profitability will turn higher on these lofty bets.

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It's quite misguided and dangerous to judge a company's success by their stock value since the stock market is mostly unpredictable. MS has been making tons of money, if they wanted to shoot their stock value up they could easily do it by buying their own stock with all those billions they have.

I'm not surprised, he has made pretty controversial decisions before too. Good for Microsoft though.

My guess is that this hedge fund manager, after seeing the current carnival ride of the stock markets, is investing some money in some reliable, large corporation that are bound to bring some steady income of profit: so Microsoft

Whoa, did a hedge fund manager suddenly realize that if people buy a stock, its price may increase? Whereas sitting around and whining about it rarely helps?

Nah. Probably not.

Scumbag. I don't think it is too harsh a word. Not harsh enough when you consider some of the "suits" that are stealing this country blind.

This article weirdly makes it seem like a hedge fund manager makes his investment decisions based solely on CEO confidence. Look at Apple's stock right now--Jobs is on leave and (sadly) investors know something could happen to him any day--but the stock is going through the roof. There's WAY more to a company than its CEO.

Persoanlly I think that Ballmer is kind of running Microsoft into the ground, even though he did a great job in launching Windows 7 and KINECt for Xbox and the Xbox console, I think that Sinofsky should take his place.

Microsoft Expert said,
Persoanlly I think that Ballmer is kind of running Microsoft into the ground, even though he did a great job in launching Windows 7 and KINECt for Xbox and the Xbox console, I think that Sinofsky should take his place.

I agree with your comments about Ballmer; under his reign MS fell under the control of bean counters. Sinofsky....... not so sure; he is indeed a good manager but not enough a visionary. Said that it is very probable that he will be the next CEO; in the last couple of years he scientifically killed, figuratevely speaking of course, all the possible competitors.
Just my opinion of course

Nonsense. 148.8 million shares is not enough for an aggressive acquisition. Currently Ballmer owns 333 million shares.

Magallanes said,
Nonsense. 148.8 million shares is not enough for an aggressive acquisition. Currently Ballmer owns 333 million shares.

Purchase some glasses, he owns 14.8 not 148.

bdsams said,
Who said anything about a hostile takeover?

is there are another way to take the CEO position?.

And yes, it is 14.8.

Or maybe this guy knows something... knows Ballmer will leave soon and once he does leave anticipates the stock to rise thus PROFITING!

! I'm in!

no-sweat said,
Or maybe this guy knows something... knows Ballmer will leave soon and once he does leave anticipates the stock to rise thus PROFITING!

! I'm in!

That's what I'm honestly thinking...

no-sweat said,
Or maybe this guy knows something... knows Ballmer will leave soon and once he does leave anticipates the stock to rise thus PROFITING!

! I'm in!


Not the worst strategy, indeed.

1. Buy stock
2. Complain about fundamental things
3. Know something "behind the scenes"
4. Raise your stock and mesmerize everyone
5. ???
6. Profit!!!

GS:mac

no-sweat said,
Or maybe this guy knows something... knows Ballmer will leave soon and once he does leave anticipates the stock to rise thus PROFITING!

! I'm in!

If he did know something, he'd be violating the law if he invested in it knowing something no one else does outside the company... that's a huge risk, just look at martha stewart...

Stewart Gilligan Griffin said,

If he did know something, he'd be violating the law if he invested in it knowing something no one else does outside the company... that's a huge risk, just look at martha stewart...

Doesn't mean it doesn't happen and hell do we know how often those cases get brought up versus the times no-one knows afterwards?

GS:mac

Glassed Silver said,

Doesn't mean it doesn't happen and hell do we know how often those cases get brought up versus the times no-one knows afterwards?

GS:mac


A guy like this that made a public statement against balmer, then goes and invests in it more after it definatly will raise supicions by the SEC if something happens here soon

Edited by neufuse, Aug 17 2011, 2:44pm :

Stewart Gilligan Griffin said,

A guy like this that a public statement against balmer, then goes and invests in it more after it definatly will raise supicions by the SEC if something happens here soon

Mh, yeah, that's true.

GS:mac

Glassed Silver said,

Not the worst strategy, indeed.

1. Buy stock
2. Complain about fundamental things
3. Know something "behind the scenes"
4. Raise your stock and mesmerize everyone
5. ???
6. Profit!!!

GS:mac

7. Get done for insider trading!

Stewart Gilligan Griffin said,

If he did know something, he'd be violating the law if he invested in it knowing something no one else does outside the company... that's a huge risk, just look at martha stewart...

Not necessarily; it wuld be "inside trading" if he was made aware of confidential information and, based on them, bought stocks.

As for Martha Stewart and the othe other few unlucky ones who were paraded handcuffed and surrounded by cops as they were Al Capone and Co. it was just a show orchestrated to satsfy an angry audience and show that the SEC and the government were "as usual" protecting common people ( AKA known as cow to milk).

Fritzly said,

Not necessarily; it wuld be "inside trading" if he was made aware of confidential information and, based on them, bought stocks.

As for Martha Stewart and the othe other few unlucky ones who were paraded handcuffed and surrounded by cops as they were Al Capone and Co. it was just a show orchestrated to satsfy an angry audience and show that the SEC and the government were "as usual" protecting common people ( AKA known as cow to milk).

Ummm, common people who commit crimes are handcuffed and carted off in front of people. Rich people useually never get that treatment unless its one they dont like. Everyone like Martha Steweart. She comminted a crime, she got what she deserved. if she didnt, she wouldnt have gotten embarrased.

I think that this hate may change in a couple of years. Ballmer is working on completely changing the company, and in a very radical way too. My favourite tech CEO today!

DrakeN2k said,
What is with the Ballmer hate. not like Microsoft profits are dropping
I don't like the guy either. I can't quite put my finger on it but there's something about him that's very unappealing. IMHO he comes off as pompous.

Tim Dawg said,
I don't like the guy either. I can't quite put my finger on it but there's something about him that's very unappealing. IMHO he comes off as pompous.

Especially compared to his predecessor.

The thing is, Microsoft's earnings are not growing because of Steve Ballmer. They're growing in spite of Steve Ballmer. It's still the legacy of Bill Gates that's carrying the company through.

TomJones said,

Especially compared to his predecessor.

The thing is, Microsoft's earnings are not growing because of Steve Ballmer. They're growing in spite of Steve Ballmer. It's still the legacy of Bill Gates that's carrying the company through.

No, investors give him credit for that! They say that, although he may not have break-in into another large cash cow yet, he has certainly been able to milk the current cash cows very much.
And it was Ballmer and Gates together that actually made those legacy. He had a big say, and was said to be more involved on the product side than Bill Gates himself. Gates was more of a strategist, while Ballmer would work on the product side. Paul Allen left much earlier.
No wonder the entire board and Gates has unanimously agreed to keep him in place. Even Einhorn seems to agree.

Tim Dawg said,
I don't like the guy either. I can't quite put my finger on it but there's something about him that's very unappealing. IMHO he comes off as pompous.
He isn't worse than Steve Jobs.