EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

09.22.08

Steve Ballmer Admitted Microsoft is Absurdly Overvalued

Posted in Finance, Microsoft, Steve Ballmer at 8:12 am by Dr. Roy Schestowitz

“There is such an overvaluation of technology stocks that it is absurd. I would include our stock in that category. It is bad for the long-term worth of the economy.”

Steve Ballmer

The quote above was extracted from the following new post, which analyses the character of Microsoft’s CEO, at least at a most shallow level.

Yet there would seem to be plenty of reasons to doubt one thing about Steve Ballmer, and that is his sanity.

This is not personal attack (or an egg attack); it’s an innocent observation, which other sites like Gizmodo are making as well. The financial situation of Microsoft was discussed in [1, 2, 3] and also in the IRC channel on Sunday afternoon. Erratic behaviour may be an indication of something in the hiding. Some days ago we wrote some more about it (see the section at the very bottom). Shown below are Microsoft’s buybacks as of August 2008 (courtesy Todd Bishop, who formally quit last week). The stock is being artificially pumped, so there’s only an illusion of sustainability (short term).

Microsoft buybacks

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

10 Comments

  1. Needs Sunlight said,

    September 22, 2008 at 10:39 am

    Gravatar

    How much of M$ revenue is due simply to buying and selling its own stock and various stock portfolios?

  2. AlexH said,

    September 22, 2008 at 11:13 am

    Gravatar

    @Needs: probably a large amount but a small proportion, if that makes sense.

    Contrary to what this site says, buying stock isn’t a sign of weakness – see Wikipedia’s article for a basic treatment.

    They certainly will play the market with other stocks, and if well managed that ought to turn a profit. Effectively, they’re just taking control of what the banks would be doing in any event, but it’s not income per se until it’s realised. Based on recent financial statements, they have $13b in short-term investment.

  3. Roy Schestowitz said,

    September 22, 2008 at 11:18 am

    Gravatar

    Don’t ever rely on what Microsoft tells you. The SEC is still asleep at the wheel. it’s only beginning to wake up now.

  4. Roy Schestowitz said,

    September 22, 2008 at 11:19 am

    Gravatar

    I should add:

    Microsoft is said to have engaged in fraud before:

    http://boycottnovell.com/2008/08/31/charles-pancerzewski-vs-fraud/

    Two months ago an ex-Microsoft accountant was sent to prison for fraud.

  5. AlexH said,

    September 22, 2008 at 11:24 am

    Gravatar

    I wouldn’t throw accusations of fraud around quite so easily if I were you.

  6. Roy Schestowitz said,

    September 22, 2008 at 12:01 pm

    Gravatar

    I throw no accusations. I present some facts in the above (about the conviction and the older saga). It’s only natural to be suspicious at the moment, but I make no accusations. All the information is contained in the press that publishes only validated facts. Take the time to read it.

  7. AlexH said,

    September 22, 2008 at 1:00 pm

    Gravatar

    Sorry?!

    The stock is being artificially pumped, so there’s only an illusion of sustainability (short term)

    Pumping stock is illegal. If you’re saying they’re doing it, that’s an accusation of fraud.

    Where are the validated facts?

  8. Roy Schestowitz said,

    September 22, 2008 at 1:05 pm

    Gravatar

    Pump & Dump is illegal. For Microsoft to boost its stock (pump) is perfectly fine.

    http://www.faqs.org/abstracts/News-opinion-and-commentary/Link-to-IBM-helps-pump-up-tech-stock-Microsoft-to-fall-short-of-forecasts.html

    Microsoft is buying back its stock to elevate it,

    http://seattletimes.nwsource.com/html/businesstechnology/2003437957_vista19.html

  9. AlexH said,

    September 22, 2008 at 1:13 pm

    Gravatar

    Actually, any manipulation of the stock price is illegal. Pump and dump obviously doesn’t apply to MS stock.

    Stock buy-backs do elevate the price, and rightly so. You should read the link I posted earlier.

  10. Roy Schestowitz said,

    September 23, 2008 at 11:27 am

    Gravatar

    The emphasis is not just the buybacks though (don’t be easily distracted). It’s the fact that they fund it using a loan (i.e. debt). That’s the whole point of the followup post.

What Else is New


  1. António Campinos Has Run Out of Time and EPO Staff is Going on Strike (Skipping Mere Protests)

    European Patent Office strikes are to resume; as SUEPO recently put it, people have come to accept that EPO leadership has not really changed and none of the underlying issues is being tackled



  2. Links 23/5/2019: Elisa 0.4.0, OpenSUSE Leap 15.1 Released

    Links for the day



  3. Links 22/5/2019: Mesa 19.0.5, Huawei and GNU/Linux, Curl 7.65.0, End of Antergos, Tails 3.14, ownCloud Server 10.2, Firefox 67.0

    Links for the day



  4. Quality of Patents is Going Down the Drain and Courts Have Certainly Noticed

    Uncertainty or lack of confidence in the patent system has reached appalling levels because heads of patent offices are just striving to grant as many patents as possible, irrespective of the underlying law



  5. EUIPO and EPO Abuses Growingly Inseparable

    'Musical chairs' at CEIPI and the EPO/EUIPO (Battistelli, Archambeau, Campinos) as well as joint reports never fail to reveal the extent to which EPO abuses are spreading



  6. Links 21/5/2019: China's GAFAM Exit, DragonFlyBSD 5.4.3

    Links for the day



  7. Links 20/5/2019: Linux 5.2 RC1, LibreOffice 6.3 Alpha, DXVK 1.2.1, Bison 3.4 Released

    Links for the day



  8. South Korea's Government Will Show If Microsoft Loves Linux or Just Attacks It Very Viciously Like It Did in Munich

    Microsoft's hatred of all things GNU/Linux is always put to the test when someone 'dares' use it outside Microsoft's control and cash cows (e.g. Azure and Vista 10/WSL); will Microsoft combat its longstanding urge to corrupt or oust officials with the courage to say "no" to Microsoft?



  9. Links 19/5/2019: KDE Applications 19.04.1 in FlatHub and GNU/Linux Adoption

    Links for the day



  10. The War on Patent Quality

    A look at the EPO's reluctance to admit errors and resistance to the EPC, which is its very founding document



  11. Watchtroll, Composed by Patent Trolls, Calls the American Patent System “Corrupt”

    Another very fine piece from Watchtroll comes from very fine patent trolls who cheer for Donald Trump as if he's the one who tackles corruption rather than spreading it



  12. Unified Patent Court Won't Happen Just Because the Litigation Microcosm Wants It

    Unified Patent Court (UPC) hopefuls are quote-mining and cherry-picking to manufacture the false impression that the UPC is just around the corner when in reality the UPC is pretty much dead (but not buried yet)



  13. Links 17/5/2019: South Korea's GNU/Linux Pivot, Linux 5.1.3

    Links for the day



  14. Q2 Midterm Weather Forecast for EPOnia, Part 4: Happy Birthday to the Kötter Group?

    This year the Kötter Group commemorates the 85th anniversary of its existence. But is it really a cause for celebration or would a less self-congratulatory approach be more fitting? And does it create the risk that a routine tendering exercise at the EPO will turn into Operation Charlie Foxtrot?



  15. Links 16/5/2019: Cockpit 194, VMware Acquires Bitnami, Another Wine Announcement and Krita 4.2.0 Beta

    Links for the day



  16. The EPO's Key Function -- Like the UPC's Vision -- Has Virtually Collapsed

    The EPO no longer issues good patents and staff is extremely unhappy; but the Office tries to create an alternate (false) reality and issues intentionally misleading statements



  17. Stanford's NPE Litigation Database Makes a Nice Addition in the Fight Against Software Patent Trolls

    As the United States of America becomes less trolls- and software patents-friendly (often conflated with plaintiff (un)friendliness) it's important to have accurate data which documents the numbers and motivates better policy; The NPE (troll) Litigation Database is a move towards that and it's free to access/use



  18. Q2 Midterm Weather Forecast for EPOnia, Part 3: “Ein kritikwürdiges Unternehmen”

    A brief account of some further controversies in which the Kötter Group has been involved and its strained relations with German trade unions such as Verdi



  19. EPO Had a Leakage Problem and Privacy of Stakeholders Was Compromised, Affecting at Least 100 Cases

    The confidentiality principle was compromised at the EPO and stakeholders weren't told about it (there was a coverup)



  20. Links 15/5/2019: More Linux Patches and More Known Intel Bugs

    Links for the day



  21. False Hope for Patent Maximalists and Litigation Zealots

    Patent litigation predators in the United States, along with Team UPC in Europe, are trying to manufacture optimistic predictions; a quick and rather shallow critical analysis reveals their lies and distortions



  22. The Race to the Bottom of Patent Quality at the EPO

    The EPO has become more like a rubber-stamper than a patent office — a fact that worries senior staff who witnessed this gradual and troublesome transition (from quality to raw quantity)



  23. Q2 Midterm Weather Forecast for EPOnia, Part 2: Meet the Kötters

    An introduction to the Kötter Group, the private security conglomerate which is lined up for the award of a juicy EUR 30 million contract for the provision of security services at the EPO



  24. Links 14/5/2019: Red Hat Satellite 6.5, NVIDIA 430.14 Linux Driver and New Security Bug (MDS)

    Links for the day



  25. Links 14/5/2019: GNU/Linux in Kerala, DXVK 1.2, KDE Frameworks 5.58.0 Released

    Links for the day



  26. Q2 Midterm Weather Forecast for EPOnia, Part 1: Urgent Shitstorm Alert

    Experts at the European Patent Office's (EPO) weather observation station have just issued an urgent alert warning about a major shitstorm looming on the horizon



  27. Patents That Were Gleefully Granted by the EPO Continue to Perish in Courts

    The decreasing quality of granted European Patents already becomes a growing problem if not a crisis of uncertainty



  28. Links 13/5/2019: ExTiX 19.5 and GNU Radio Conference 2019

    Links for the day



  29. The Microsoft Guide to the Open Source Galaxy

    Thou shalt not...



  30. Microsoft Would Kill the Goose for Money

    Microsoft is just 'monetising' Open Source by using it as 'bait' for Microsoft's proprietary software; those who we might expect to antagonise this have effectively been bribed by Microsoft


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts