Microsoft and other companies should not be spending their record amounts of cash on mergers and acquisitions, said Eric Jackson of Ironfire Capital on Wednesday's "Fast Money."
An activist Microsoft shareholder, Jackson is urging the software giant to double its dividend and said these other four companies should also return cash:
- Hewlett-Packard
- IBM
- Exxon
Last week, Jackson filed a resolution with Microsoft to "significantly increase" their dividend or do buybacks. He said if the Redmond, Wash.-based company puts it on the proxy, it would be voted on in November.
"Shareholders are going to have a chance to vote and I think the majority will say, 'We want this money,'" said Jackson. "Microsoft is not going to every be the growth company it was in the 80s, but it can be an attractive company to a lot of investors who are hungry for yields."
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Trader disclosure: On Aug 25, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (BM), (GOOG), (MSFT), (QCOM), (TER), (BRCM), (AXP), (C), (MRVL), (BMO), (V), (POT), (GLD), (FCX), (APA), (SU), (XBI); Cortes Owns (FCX), (SFD), (BHP), (TD), (BMO);Cortes Is Short Yen; Cortes Owns Crude Oil; Najarian Owns (HPQ) Calls; Najarian Owns (CELG); Najarian Owns (TCK); Najarian Owns (CNI); Najarian Owns (TEVA); Najarian Owns (V) Calls; Najarian Owns (STX) Calls; Najarian Owns (WDC) Calls; Najarian Owns (MU) Calls
For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (XLY)
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For Brian Kelly
Accounts managed by Kanundrum Capital own (GDXJ)
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Accounts managed by Kanundrum Capital own U.S. Dollar
Accounts managed by Kanundrum Capital own (TBT)
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Accounts managed by Kanundrum Capital own Swiss Franc
Accounts managed by Kanundrum Capital are short (XLF)
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For Dennis Gartman
Funds managed by Gartman own Gold
Funds managed by Gartman is short the Euro
For Peter Boockvar
Boockvar is long the Euro
For Eric Jackson
Funds managed by Jackson own (MSFT)
Moshe Orenbuch
(C), (JPM), (BAC) , (WFC), (PNC), (USB) Is Or In Past 12 Months Was A Client Of Credit Suisse
Credit Suisse Provided Investment Banking Services To (C), (JPM), (BAC), (WFC), (PNC), (USB) In Past 12 Months
Credit Suisse Provided Non-Investment Banking Services To (C), (JPM), (BAC), (WFC), (PNC), (USB) In Past 12 Months
Credit Suisse Has Managed Or Co-Managed Public Offering Of Securities For (C), (JPM), (BAC), (WFC) In Past 12 Months
Credit Suisse Has Recieved Investment Banking Compensation From (C), (JPM), (BAC), (WFC), (USB) In Past 12 Months
Credit Suisse Expects To Receive/Seek Investment Banking Comepnsation From (C), (JPM), (BAC), (WFC), (PNC), (USB) In Next 3 Months
Credit Suisse Has Received Non-Investment Banking Compensation From (C), (JPM), (BAC), (WFC), (PNC), (USB) In Past 12 Months
For Gene Munster
(ACOM), (LOGM), (RLOC) have been investment banking clients of Piper Jaffray during the past 12 months.
Piper Jaffray expects to have (RLOC) as an investment banking client within the next three months.
Piper Jaffray received non-investment banking securities-related compensation (DRIV) during the past 12 months
Piper Jaffray makes a market AAPL, ACOM, AMZN, BIDU, DRIV, EBAY, FMCN, GOOG, GSIC, IACI, KONG, LOGM, MCHX, MELI, PRTS, RLOC, SINA, SOHU, VCLK, WWWW, YHOO
For Mike Khouw
***No Disclosures***