GBH:
Sounds exactly like the comments just before judge Green lowered the boom on AT&T.
I have no idea whether the Government boys will take out the milking machine or the ax, nor do I care. Either way, when MSFT loses this case (and it will), some form of action will be taken. which initially at least will be viewed as a negative by the market.
MSFT is a company that I've consistently suggested the shorts ignore,...at least for a while. There are far more delicious targets around, and MSFT's time will come soon enough. The real strength of Microsoft is that river of cash from the O.S. royalties. Until that is either reduced by a SERIOUS drop in PC unit sales (which I don't see happening,....more a slow erosion), or the loss of its monopoly O.S, status, which is possible, but not yet probable. The product itself is mediocre, but it is still the standard.
Does it get broken up? I'd give 50-50 odds, but again, who cares. The O.S. division will still exist.
There is probably a decent, but not spectacular short trade as the case comes to a head. Better targets beckon.
Best, Earlie |
