Important questions that are germane to our investments are:
1> Can MSFT stock price justify its' multiples? Yes
2> Did MSFT violate the law? No
3> Was MSFT down graded? No
4> Will MSFT get split up? Impossible based on DOJ's current position.
5> Do the states have any grounds to receive civil damages that could materially effect MSFT? No
6> Could MSFT over turn Judge Jacksons ruling? I thinks so, they have done it before and US courts do not take sides in business. Predicated on what is manifested in the findings of fact the DOJ has IMHO a tenuous position on the grounds of procedure and "findings of facts."
7> Is the tech sector in need of a correction? Yes, a major one, if this did not happen we would be in for a major economic catastrophe.
8> I feel MSFT is one of the few companies that already reflects any correction and because it is oversold I have made a decision to buy.
9> I never thought I would be able to get in at such a price but it is amazing what market psychology can do.
10> MSFT has the wherewithal, technology, brand recognition, finest mgmt. and growth to continue to spur growth in this new economy.
11> The DOJ actions could have detrimental effects on US companies and how well they are able to compete globally. If we are to circumscribe our finest companies on how they can compete in this competitive global economy, then we will be jeopardizing our economic well being. A good case in point was when the Japanese banks were able to spread their tentacles around the globe in the 80's, the field was not level because the standards Japanese banks were held to were very much biased in their favor. To circumscribe MSFT, absent of any fraud, would be tantamount to hamstringing a general in limiting his logistic capabilities. MSFT is the five star General in our economy and don't ever think that by destroying MSFT we will become more competitive globally.
12> MSFT's behavior is no different to that of INTC, CSCO and many other large caps. Do I approve of their behavior? Not exactly, but reality dictates that in a free society or democracy we can not circumscribe the freedom with which companies choose to do business and it is unfortunate that natural selection has chosen MSFT in lieu of Netscape. It is reality and we have to accept it. The alternative is to have Uncle Sam involved in every business transaction to assure equality, it sounds more like our experiences with communism. |
