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Are the huge cash piles on the balance sheets of large tech companies destroying equity value?

Morgan Keegan analyst Tavis McCourtmakes that assertion today in a provocative research report. His basic case boils down to this: by piling up cash, large tech companies set the stage for bidding wars over potentially competitive younger companies, resulting in often dilutive acquisitions. His view: if the average tech company paid out 70% of net income in dividends, the stocks would all offer fat yields - and their stocks would likely rally dramatically.