What are you smoking ?
Microsoft just reorganize itself in five different subdivisions , you may look them as five different sub companies under the name of Microsoft , and all in different business. So, with a little math, if you divide the total 500B cap by 5 , you
will get 100 B of cap for each of Microsoft sub divisions. And as time goes by, as
more business opportunities comes to the horizon, more sub companies will be
established within Microsoft, and and cap of each sub company of Microsoft will be
smaller due two more sub companies will share the total caps of Microsoft, so , with smaller caps of each sub Microsoft company, each sub company will have more chance to grow in its respective business. and the posibillity that some sub Microsofts
(Baby Microsofts) may spin off eventually.
From another point, Say a company called ABC , which merge IBM, ORCL, SUNW,AOL, SEARS, HD together as one single company called ABC. The total cap
of ABC will be at least 6 times of each the above companies, do you think ABC will
have less growth than IBM, ORCL, SUNW, AOL, SEARS, HD , becase ABC's cap
is much larger than the above individual company ? I do not think so, because ABC
is involved in Harware, software , E-commerce, department business, and each business has its own market.
Today's Microsoft is much more diversified, its in Software business, e-commerce business, department store business, pretty soon , it will be in Telecommunication business, banking/finance and hardware business ( I see Microsoft may buyout COMS, the Palm + Internet) .So even though Microsoft as a single giant Company , with its diversification and each baby Microsoft in different high growth market, I see the future growth is unlimited. The Market cap is not an issue at all. The money around the world can afford more Microsofts than you think !!!!!!!!!!!! |
