Analysts are calling on Microsoft to use its extra cash ($56 billion) in order to boost the company's share price. Though Microsoft argues that the extra case is there for a reason (lawsuits). These lawsuits seem to be coming in every month. It's no surprise that Microsoft wants to hold out on spending the case pile. Most recently Microsoft agreed to give Sun Microsystems $1.95 billion in order to settle all legal disputes.
Ahead of upcoming meetings to discuss Microsoft's financial picture, financial analysts this week called on the software giant to use the company's massive cash hoard to boost the company's share price.
Securities analysts have long questioned Microsoft's fiscally conservative management regarding its huge $56 billion cash stockpile and the billions of dollars it generates from ongoing operations. Microsoft has said that the money will be used to settle outstanding litigation against the company and pay related fines but has not offered any specific details. Analysts speculated that Microsoft will discuss its plan to handle its massive cash position at its fourth-quarter earnings announcement on July 22 or a meeting of financial analysts on July 29 in Redmond, Washington.
On Thursday, Bernstein Research analyst Charles Di Bona sent a report urging Microsoft to consider a stock purchase plan or a special dividend to shareholders. Di Bona also said that Microsoft could boost its annual dividend, which Microsoft started giving out last year for the first time