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Microsoft Corporation Message Board

  • tupakdarbac tupakdarbac Oct 21, 2011 11:17 PM Flag

    MSFT broken beyond repair

    MSFT in March 2000 = about $50/SHR
    MSFT today = $27
    Down 46% in 10.5 years, what a dog.

    By comparison, some of the its DOW brethren have done the following over the same time period:

    MMM up 95% + dividends

    KO up 39% +dividends

    XOM up 111% + dividends

    The dividends alone average an added increase of 25% of the stock value over the period. Even if these stocks had no stock appreciation, you would be up 25% on the dividends alone, instead of a 46% loss. Even if MSFT dividend is included it is still a loser by comparison.

    By comparison to the three stocks above, MSFT is not even a value stock. Ballmer has broken MSFT.

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    • I use Linux to fix broken Windows computers.

    • Though Microsoft's stock is significantly lower than it was in 2000, however the business by any other measure is significantly better. Microsoft was trading at well over 50X earnings in 2000, the other stocks you mention were trading at significantly less than that. Some, like XOM, have benefited from trends that have absolutely nothing to do with management acumen.

      Today Microsoft trades at under 10X earnings x-cash. Which makes it quite clear that the greatest investment that Microsoft could make would be in it's own stock. There is no other investment that would bear a greater return.

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