Clark, your MSFT selling DOS too early in the game is tempting but I'll take a run from a different angle. First, I don't think it's very productive to attempt to measure the wisdom of the market's response: this is the same market that thinks e-bay is worth more than most companies in the known universe. Sorry, ain't buying it. Besides, if Ericy's market cap took a bigger one day bounce, it would be equally valid to argue that it's coming off the floor whereas the Q has been sporting a nice run for the last couple of weeks. Why not compare differential increase in market caps over a different time period? But that's just chatter.
More substantive, I think, is to take Irwin at his literal word: this deal is about comparative advantage. It let's the Q do what it does best, ditto for our new best friends. I'm thinking Microsoft and Intel. Face it, Ericy has greased every government offical on the planet for decades. No doubt you are correct that the profit margins on that stuff are big time, and Ericy has got that part of the game wired. Meanwhile they can't make an ASIC to save their kronor while the Q spins 'em out like very profitable hot cakes.
As to the loss of human talent, well that would be very concerning. But my guess is that the Q knows how to recruit, and retain, the very best in the business. Think I'll hang around for a while. Kind regards, Mike Doyle |
