MSFT as an investment, as a company

[St Leo]

Re: MSFT as an investment, as a company

Originally posted by DanS
The shine has been off of Microsoft's stock for the last several years, so I thought it would be a good time to take a look at the company.

Trying to sell some stock, Dan?

[Agathon]

Originally posted by DanS
Unfortunately, nothing runs on a Mac.

Correction: everything runs on a Mac.

Get your facts straight, doofus. Apple computers have the largest available software library of any consumer PC. They can run Mac OS, Windows, Linux and all the software available for each platform.

[DanS]

Amend to say "Unfortunately, nothing runs on OSX."

[Agathon]

Originally posted by DanS
Amend to say "Unfortunately, nothing runs on OSX."

Thousands of programs run on OS X. The only programs that it doesn't have a major presence with are games. Most Windows programs that aren't games have been ported to OS X or have an OS X equivalent.

But it doesn't matter. You can't buy OS X without buying an Apple computer, and you now cannot buy a new Apple computer without buying a computer that has access to the largest software library of any desktop or notebook computer.

It must suck to be so wrong, but I guess you are used to it by now.

[KrazyHorse]

Way to aggie up this thread, dork.

[Imran Siddiqui]

Originally posted by KrazyHorse
Way to aggie up this thread, dork.

QFT

(btw, I wholeheartedly approve of the new verb)

[Agathon]

Originally posted by KrazyHorse
Way to aggie up this thread, dork.

As opposed to your inane, narcissistic and drink-sodden ramblings.

I'll take that...

[Skanky Burns]

Originally posted by Agathon
I'll take that...

To another thread?

[DanS]

One of the problems that Microsoft has is that it can't find businesses in which to invest its capital that return 32% net after-tax profit on sales (a curse that all businesses except Google and a handful of others would love to have). Currently, only their monopoly product lines do that and those are already fully invested.

I think we could evaluate whether the other two product lines (XBox, MSN) have the potential to be that lucrative.

[Japher]

I doubt it.

Though if the XBox continues to move more away from the gaming system, to an all inclusive entertainment system I think they'll be better off.

[Dinner]

The monopoly won't last forever and there is always the threat of government action. Even though it will lower the average rate of return they should diversify their business to protect themselves from such an event.

In any event I doubt MSFT really is worried about Google and instead google's line of work is one of the few that fgrow 30% per year so MSFT wants a piece of that action.

[pchang]

MSFT is a solid mature company whose stock price should rise in step with its profits. If you want a home run, those days are over. I doubt its stock performance will vary much over that of the S&P 500 index over any length of time for the forseeable future.

[One_more_turn]

I dumped MSFT the day after its ER. Two of its supposedly future revenue generators fared very poorly, so the company has to spend a lot to just play catch-up. The earning will take it a hit next year and the growth is gone. Currently, the stock price is stuck in the same nether region as DELL where the growth crowd doesn't want it and value crowd finds it still too expensive.

Back in 1989, MSFT sold for a P/E of 18, when it was much smaller (more nimbler) and had much better growth prospect than today.

I wouldn't buy MSFT now.

[DanS]

One of its revenue generators is XBox 360? If so, how can you describe it as faring very poorly? Or are you talking about the company laying eggs on its way to the release of Vista?

I agree with the nether region part of your post. It still might be a little too expensive for my taste as a value investor. But it's getting into my sweet spot rather quickly, considering its cash horde. Its financials look like the type that a value investor is trained to look for.

[NeOmega]

in January I was looking at MSFT, INTC (Intel) or PCAR (Paccar)

Tech is not so hot right now. Even though they are good companies, I think too many big investors are still scared from the dot.com bust.

I bought Intel...

MSFT just recently tanked. I see it going the smae direction as Intel. Both are great companies, but not very trendy stocks. I think they are great bear stocks. Something to stash in your cave and sleep on.

I am hoping the real estate bubble will pop, and pop hard, as interest rates continue to rise, and all the hot stocks and get rich quick stocks will lose their lustre, and more solid, blue chip stocks will come back into style..... cuz I am out ALOT of money right now.