Good morning, QS. For MSFT to, "go through the roof," as stated by CNBC, it would be an excellent example of "buy on the rumor" and nothing more. Yes, Judge Jackson wants a settlement and yes, MSFT is doing the only think it can, present a public image of being cooperative, of wanting to work with the DOJ, of wanting to do the right thing.
MSFT has a public image problem in many quarters right now and they know it. They also know even some of their staunch supporting shareholders want them to settle. Whether they want to settle or not, even if they are ultimately unwilling to make concessions or compromises, they had to come off as sounding receptive to Judge Jackson. Just try to imagine the reaction if MSFT had said, "No settlement, we want to continue with the legal process because we did nothing wrong."
I had CNN, not CNBC, on last night and as JDN has already mentioned, MSFT was stated as being up in after hours trading. I get 90 9/16 over at island:
isld.com
SUNW was up a fraction above the closing price at 129 7/8; the "hit" did not begin.
Your point on any settlement not being soon is worth stressing. As a spectator myself, I would not be surprised if MSFT draws the attention of more speculators and day traders than normal during the liminal period that started last night and will only end when the "settlement" negotiation period is over. Even if I had wanted some shares of MSFT, I would not buy any now but would wait on the sidelines until something definite is known--which could be months.
SUNW? I am a long term shareholder so even if we do experience some volatility, it is not going to concern me. For CNBC is deem SUNW a "competitor" makes me question if people at CNBC knows what SUNW does. SUNW is more MSFT's nemesis, the pebble in MSFT's shoe, the mosquito buzzing around its ear while it tries to sleep.
Lynn |
