While Microsoft maybe cheap its performance has been abysmal I can say this I am an investor and I have been extremely disappointed with the returns. I also don’t have faith that it will increase anytime soon because I don’t see a technological innovation on the horizon only copycat strategies that are not successful at taking market share.
Two quotes -
- Microsoft's share of internet-connected devices has gone from 95% to under 50% in 3 years;
- Windows no longer provides measurable ROI to enterprises, who will shift spending to other products and services;
Both are from Facebook Investor Roger Mcnamee Explains Why Social is Over.
(He also thinks Google's goose is cooked. Seems a little premature on that one, so take it with a grain of salt and make your own decisions. Sometimes, it helps e to hear a good contrarian view and the bolded quote is a good insight.)
Re: Are consumer Sales down across the board?
back2basicz
7/25/2011 2:31:52 PM
Scott,
The Big problem for RIMM is that they have an awful OS.And as Smartphone and Tablet devices take off,you need two things above all others-
1)A great OS
2)An excellent ecosystem for App Developers to develop excellent Apps.
RIMM lacks both these features .
So its best that Investors for confirmed signs that RIMM has bottomed decisively before they step right in.
Regards
Ashish.
Driven,
You are extremely accurate.
If the cash were to be brought home(in the abscence of a specially legislated Tax Holiday by Congress);the Tax liability would be crushing for MSFT.
This is precisely the reason they made the SKype and now I think they may make the RIMM deal.
Regards
Ashish.
cash abroad
driven
7/25/2011 12:07:22 PM
Scott
With so much of Microsoft's cash stashed abroad, can it legitimately issue dividends with it or will it lose too much value in taxes once it brings it back to the US? I thought that's why it made that Skype deal.
Re: Are consumer Sales down across the board?
Value Hiker
7/23/2011 10:23:43 PM
If you just crunch the number, rimm is a steal, no question about this. Unfornately, investor can not liquidate the company tomorrow. There will be proxy fighting, legal action, or even government involvement. By the time everything is settled, all the value will be gone.
That is why it is so risky to involve a high tech company that fell over the cliff. The fundamentals are deterioted so fast that you rarely have enough time to reap any value from your analysis
Re: Are consumer Sales down across the board?
mInvestor
7/23/2011 6:29:40 PM
Indeed RIMM's price looks pretty cheap comparing to it's historical high. But I am also afriad to catch a falling knife (like Nortel). Looking forward to reading your analysis. Thanks.
Re: Are consumer Sales down across the board?
Scott Raynovich
7/23/2011 4:36:31 PM
I think I will look at RIMM this week. It seems to be getting ridiculously cheap and that somebody will want to buy them. Investors will probably want to force a breakup soon if the founders don't get their act together.
One lesson to be learned in the mobile world is how fast fortunes can change in technology, it's a fast-moving and dynamic marketplace.
Re: Are consumer Sales down across the board?
mInvestor
7/23/2011 12:14:37 PM
Scott,
Thank you for pointing out Xbox specifically. It's a very good game device, and it's interesting MS finally made some profit from it. I agree the potential is big.
Also, another tech company, RIMM, last reported also sitting on a hugh cash. But its market share is shrinking soon, and stock price cut to half. What's your opinion on RIMM. Or even better, will you write a article to cover RIMM in the near future?
Even though the BOD took Ballmer's side in the dispute with David Einhorn back at the beginning of the summer, I still think Microsoft is looked at as suffering from a lack of visionary leadership.
I like the Skype acquisition! But image is everything and it's pretty tough to out-sexy Apple...
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