C'mon guys - Nasdaq lost 73 points - 3% today. MSFT lost 1 point, 1.3% on the day, after being up almost 2 points for much of the day, until the late selling. Compare this to losses in CSCO, LU, or INTC. Since people love to compare MSFT to INTC, you'll notice that INTC lost 3 points or 5.5% on heavier volume %-wise than MSFT - and INTC now has a p/e under 29. So, if you are troubled by high p/e selling, that's not the be all and end all. Plus, those who love to complain about MSFT performance this year, look at the other part of Wintel - INTC is now down for the year sharply (60 on Jan 4), and the very low for 99 (you'd have to go to the begining of Nov 98 for lower). And this after settling with the FEC. So, for MSFT to still be up on the year, in face of a horrendous legal negative, says a lot.
I'm not a blind cheerleader for MSFT, and I've been warning about the market-related dangers to MSFT's shareprice even as we climbed toward 95 right after the split and people were dreaming of breaking 100. So, it's not as a mad cheerleader that I say MSFT shows tremendous internal strength. Long term, MSFT is an awesome holding - and a tremendous value. The risks of being out of MSFT are far greater than being in it. Unless you are a trader, it's best to ignore the short term market noise.
Good luck to all MSFT holders!
Morgan |
