Greg, it is much easier to justify (or more properly rationalize) Microsoft on several bases. First, it has a brand identity that goes far beyond anything in the industry with the possible exception of Apple. Second, it has phenomenal cash flow. Third, it has huge operating margins. Fourth, a major upgrade from Microsoft is like a bell ringing that requires customers world wide to feed Mr. Softie's coffers. Yes, I know that there are some diehards out there who are still using DR DOS, and some percentage of the market will stick with Apple or LINUX. But the point with MSFT is that you put all of the elements together and you don't have merely a gorilla, you have King Kong!
AOL is not nearly at that stage, and it is difficult for me to imagine that it ever will, especially in view of the fact that MSFT may well turn out to be AOL's biggest rival. So while I can well understand the euphoria of people who have seen their investment dollars quadruple in a matter of a few months, I need to temper that impulse in myself.
Was it just a couple of weeks ago that some people were asking about what was wrong with this stock when it was trading at only $140 when just a month or so before it was trading at $90? Does this make any sense to you?
TTFN,
CTC |
