johnd, your p/e's are out of whack. ORCL through investmetn gains has a p/e more like MSFT's. Excluding the huge one-time gain the p/e is more like 60.
Mr. Rick Sherlund was right. This is a relief rally in MSFT's stock. They grew below 10% and EPS was okay. Yes, they have huge income coming in but it is off of a monopoly base. They are priced according to what the market thinks their future growth prospects are. Limited grow. Win2000 is NOT on fire.
As LE has said, MSFT "will always be a great co. but noone will be talking about them". I believe this to be true. On the other hand, if Rudedog is right, that MSFT has something in .net, the market's perception of the company can change. But they is years down the road.
Lastly, if a company cannot articulate a clear concise plan, in lets say one page, then there is not plan. I believe, after minimal review of the link that Sandeep provided, that MSFT had to take alternative approach against centralized internet computing. I still don't get it and obviously the market does not either. Until they can articulate such a plan the p/e will remain somewhat restricted.
I am gaining more respect for Mr. Sherlund. He called this rally but I do not think it has legs because there is no underlying fundamentals to support it. Al in all, MSFT's p/e should be about 2.5X growth. Even if they hit the mid teens that means the p/e should be about 30-40 and thats where it is.
Have a nice weekend, Bob.
P.S.: I just saw a guy drop a 100K at Ceasars. Its only paper. |
