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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: DownSouth who wrote (27504)7/29/1999 11:48:00 AM
From: Jim Lamb  Read Replies (1) | Respond to of 74651
 
Feds set sights on Microsoft bust-up
By Thor Valdmanis and Paul Davidson, USA TODAY

After several failed attempts to settle a nasty antitrust battle out of court, the government is refocused on breaking up software giant Microsoft.

Senior officials at the Justice Department have approached at least two leading technology investment banks in recent days, requesting a detailed analysis of how best to break up the world's most valuable company - a complex study that could cost hundreds of thousands of dollars.

Bankers at the two firms, who requested anonymity, said Justice officials wanted an assessment of where the logical breakup points of Microsoft were and a valuation of what the market reaction would be. Both firms declined, worried about the impact of siding with a Justice Department that they say is viewed in the business community as interventionist.

News that Justice is seriously considering breaking up Microsoft will take analysts by surprise because many believed only the states involved in the lawsuit were pushing for it.

"We have made preliminary inquiries to experts that might assist us in evaluating an array of remedy options if the court ultimately rules in our favor," says Justice spokeswoman Gina Talamona. She said "it's premature" to discuss sanctions.

After eight months of technical testimony and hundreds of e-mail exhibits, Justice and Microsoft finished presenting their cases in the trial last month. Closing arguments are slated for September, and a ruling is expected later this year. If Microsoft is found liable, as many observers expect, a hearing to determine the proper remedy could follow. But any sanctions U.S. District Judge Thomas Penfield Jackson hands down could be delayed for years by appeals.

"If the government were to seek breakup as a remedy, it would face the argument that whatever may make sense as a matter of economic theory would not make sense as a business reality," says antitrust lawyer Richard Steuer, a partner at Kaye Scholer.

Microsoft spokesman Jim Cullinan would not comment on a possible breakup, saying: "Remedies are not something we're focused on. We believe the facts will show we competed fairly."

Some competitors wonder if two or more Microsofts might be worse than competing against one. But a breakup, depending on how it's done, could be good for investors. Just look at the post-breakup success of AT&T.

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To: DownSouth who wrote (27504)7/29/1999 10:53:00 PM
From: ed  Read Replies (2) | Respond to of 74651
 
So, You think you understand more about inflation , am I right ? Well, could you pls tell me what it means by inflation ? What can cause inflation ?

My understanding is inflation is caused by unblance of supply and demand to one extreme, and to the other extreme , it can cause deflation. So, to control inflation, you have other ways besides rate hike, and which will hurt the working people seriously, that is , people live on pay checks by pay checks. The purpose of inflation control is to prevent the increase of price of products. By rate hike , your price goes up immediately, i.e your mortgage payment will go up ( if you buy a new house or you have a adjustable loan),
by hiking the rate, the cost for companies to do business or modernizing the factories , which will improve productivity, and reduce cost, will be increased, and which will discourage companies to modernize their factories, as a result productivity reduced, and
that will fuel inflation. With rate hike, the cost to produce the food you eat everyday will increase, because farmers pay more interest to buy fertilizer, farming equipments..etc, and with rate hike, people still need to eat, so the demand will not reduce as a result, while the cost to produce is increased. Do you think by hiking the rate , people will not buy cars anymore if they need ? NO !!!! So, your monthly payment will be increased, and that is inflationary. Their are many many examples I can show you rate hike only fuel inflation and discourage companies to reinvestment on productivity . Do you know why we have a low inflation recently ? Because , people like to spend , and companies, one after one , reported higher earning , and companies have money to expand their capacity of production, which will improve efficiency and productivity, as a result the cost was reduced, and that is why you still can enjoy low inflation . What is the rate hike caused a depression, and companies can not sell their products, and as a result no revenue to continue expand and improve productivities ? then , the companies have to shrink , resize, that means lay off, millions of American working people will lose their pay checks , serious family and social problems will follow, and the tax revenues
will be reduced significantly, of course , at the same time Government will pay a lot of people on wearfares, then deficit for the government and compete with companies for money, and as a chain reaction , rate will continue to hike without end, that what happened in 1980 under Carter administration.

Well, you think about it !!!!!!! WITH YOUR BRAIN !!!!!!