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

09.23.10

More Microsoft Debt. “This Could be a High-class Ponzi Scheme.”

Posted in Finance, Microsoft, Office Suites at 7:51 pm by Dr. Roy Schestowitz

“Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers.”

The Economist, 1999

Summary: As Microsoft returns to buying its own stagnant stock, Microsoft boosters view it as an admission of failure and Pogson, a Microsoft critic, says it “could be a high-class Ponzi scheme.”

“Another Year Older, A Little Deeper In Debt,” says Pogson’s headline regarding Microsoft’s debt. He too suspects that Microsoft is not telling the whole truth about its financial situation (which it paid its former CFO not to talk about).

M$ is increasing it dividend to shareholders and paying for it with an issue of long-term notes. To pay some of them back they will have to be in business for another 30 years. Do you feel lucky, punk? I would not count on a company with decreasing share and being hated by many customers being in business that long, would you? This could be a high-class Ponzi scheme. Why is a company awash in cash and taking in $billions in sales borrowing money?

We wrote about Microsoft in relation to Ponzi schemes before [1, 2].

Microsoft has just hidden a lost division inside a very profitable one. Chips B. Malroy called it “the shell game of hiding loses, moving divisions around that are losing too much money” (here is Microsoft’s SEC filing).

Matt Rosoff from a Microsoft booster called "Directions On Microsoft" has just published a daring article in Business Insider:

FINALLY: Microsoft Just Stopped Pretending It’s A Growth Company

[...]

Microsoft’s after-market announcement of a 23 percent dividend increase, bringing its quarterly payout to $0.16 per share (a yield of about 2.5 percent), is the next step in a transition I first began to notice this July at the company’s annual meeting for financial analysts.

For most of its history, Microsoft has tried to present itself as a growth company. The market clearly disagrees—the company’s P/E ratio sits at less than 12 this morning, which is more typical of a value company than a booming tech company with huge future growth potential.

Microsoft finally appears to be coming around to this point of view itself.

With layoffs and dying/dead products, Microsoft has not been a growth company for a very long time. Microsoft cannot live on a diet of Windows and Office forever because they don’t sell so well anymore [1, 2] and Microsoft gets downgraded as a result [1, 2].

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

What Else is New


  1. IRC Proceedings: Monday, June 01, 2020

    IRC logs for Monday, June 01, 2020



  2. This is How GNU Finally Dies

    "Brace for when GNU falls the way that OSI, FSF, FSFE, Mozilla, and the Linux Foundation did."



  3. Latest Microsoft Layoffs Spun as 'Innovation' (There's Always a Positive PR Angle)

    The public is expected to simply ignore the fact that Microsoft is laying off employees (again); instead we're expected to think it's all about Microsoft being very brilliant and innovative



  4. Microsoft Playing the Victim, Irrationally 'Hated' by Victims of Its Abuse

    We're meant to believe that those whom Microsoft bribes against are the opinionated 'haters' and Microsoft is a victim of 'hate'



  5. Links 1/6/2020: Linux 5.7, FOSSlife Born, LibreOffice 7.0 Beta1, Linux Mint 20 Making Early Promises

    Links for the day



  6. Linux Without Linus

    The Linux Foundation seems to be acting like Linus (Linux founder) is somewhat of a liability (forcing him to take a ‘break’ from his own project) while taking even the most notorious proposals from corporations, including those that called Linux a “cancer”



  7. What It Would Take for Linus Torvalds to Leave Linux Foundation Without the Linux Trademark and Without Linux

    It's nice to think that the founder of Linux can just take his project and walk away, moving elsewhere, i.e. away from the Microsoft-employed executives who now "boss" him; but it's not that simple anymore



  8. The Past Does Not Go Away, Except From Short-Term Memories

    People who are drunk on power and money (sometimes not even their own money) like to portray themselves as the very opposite of what they are; but in the age of the Internet it's difficult to make the general public simply forget the past and "move on..."



  9. IRC Proceedings: Sunday, May 31, 2020

    IRC logs for Sunday, May 31, 2020



  10. Links 1/6/2020: OpenMandriva Lx 4.1 2020.05, Linux Lite 5.0 Release, FreeBSD 11.4 RC2

    Links for the day



  11. It's a Common Mistake and Common Misconception/Error to Treat Microsoft as Just Another 'Large Company' (or 'Big Tech')

    What's wrong about Microsoft isn't its size; what's wrong with Microsoft is its behaviour, which isn't just illegal (crimes are the norm) but also hugely unethical



  12. Lessons of Michael Arrington (About Microsoft)

    Microsoft and Bill Gates have a long history bullying their critics; the quote above (or below) shows how even people who advertise with Microsoft are becoming the target of abuse



  13. 'Best' of Both Worlds: GNU/Linux Freedom + Malware With Keyloggers and DRM

    Running a Microsoft-controlled GNU/Linux instance under Vista 10 ("Windows Subsystem for Linux") in the age of virtual machines, dual boot and containers makes as much sense as chopping some carrots to go with the veal meal to appease vegetarian diners



  14. First They Bribe the Employer, Media Lynch Mobs May Follow

    The 'cancel culture' lynch mobs, which leverage social causes (or marginalised groups), remain a convenient means by which to oust one's political/business opposition; but money too is a massive contributing factor and the more one has of it, the easier it is to control media narrative and subversive focus



  15. Upcoming Series Teaser: The Bribery Operation of William Henry Gates III

    Bribery goes a very long way when it comes to the megalomaniac who pays the media to portray him as the world's most generous person



  16. Windows Ransomware Must Not be Unspeakable When People Die in Large Numbers Due to That (and Windows Has Intentional Back Doors)

    Loss of electronic patient records, ransom and downtime among the severe consequences of deploying Microsoft inside hospitals; yet the media rarely names the real culprit (manslaughter charges theoretically possible) and nobody gets punished except those who offer real solutions



  17. IRC Proceedings: Saturday, May 30, 2020

    IRC logs for Saturday, May 30, 2020



  18. Burning the House That Richard Stallman (RMS) Built: An Open Letter to GNU Maintainers Who Opposed RMS

    An open letter to people who petitioned RMS to step down and who outsource GNU projects to Microsoft (GitHub)



  19. Links 30/5/2020: Godot Editor Under Web Browsers, Alpine Linux 3.12.0 and EasyOS 2.3

    Links for the day



  20. EPO's Illegal Patents and Massive Corruption Go Unnoticed by Corporate Media and Sites That Cover Patent News

    Very major corruption scandals still emerge in Europe's second-largest institution and illegal patents get granted as well as promoted; somehow, perhaps miraculously, this no longer seems to bother anybody in the media (corruption and radical policies have been gradually 'normalised')



  21. Never Mind If GNU/Linux Works Better Inside Hospitals and Free Software Not Only Safer But Vastly More Efficient...

    With lives on the line one might expect hospitals to choose what's most secure and generally works best; but in practice there seems to be a leaning towards what bribes best



  22. Sick Alexander Ramsey is Using a Public Health Crisis to Lie About the Unitary Patent, Whose Fall Made Him Redundant and/or Obsolete

    Weaponised media continues to manufacture utterly ridiculous puff pieces for Team UPC, containing intentional lies from beginning to end



  23. IRC Proceedings: Friday, May 29, 2020

    IRC logs for Friday, May 29, 2020



  24. They Came, They Saw, He Died

    Microsoft is an inherently sociopathic company; today's story of AppGet is an important reminder that Microsoft has not changed and isn't changing (Maui is another week-old example of trademark-hijacking tactics by Microsoft)



  25. Microsoft-Connected CloudGuru Doesn't Care About GNU/Linux and Now It's Gradually Killing the BSD/Linux-Centric Jupiter Broadcasting (Bought by Linux Academy)

    Assuming Docker is being 'killed' by Microsoft (or at least hijacked to push Windows, Azure and so on) while the GitHub-hosted (Microsoft) CloudGuru, whose co-founder comes from Microsoft, ‘finishes the job’ with Linux Academy and its assets, it’s time to take stock of a pattern/trend that ruins the media too



  26. What Happened to Docker is a Cautionary Tale About the Not-So-New Microsoft

    It’s hardly shocking that Docker collapsed (mass-scale layoffs) after the company had gotten close to Microsoft and got rid of its very own founder (a Red Hat veteran) while the software is being killed off/co-opted by Microsoft (all over the news this week; we’ve omitted links by intention as it’s only puff pieces, no investigative journalism anywhere); we only ask one thing: is anyone paying attention and, if so, what are the lessons learned?



  27. If You Want to Support and Follow Us 'Properly', Really Simple Syndication (RSS) is Most Reliable and Robust to Censorship

    Our longstanding position on social control media (we reject it and don't participate in it) is only proven ever more justified now that the mere idea of fact-checking is seen as controversial if not illegal



  28. Links 29/5/2020: Genode OS 20.05 and FSF Video Conferencing Service

    Links for the day



  29. IRC Proceedings: Thursday, May 28, 2020

    IRC logs for Thursday, May 28, 2020



  30. Weaponised Media Promoting an Illegal Patent System (UPC), Exploiting Major Pandemic in the Process

    The whole 'unitary' scam/ploy (merely a Trojan horse for litigation and low-quality/invalid patents) is being promoted by Thierry Breton as EU Internal Market Commissioner (in spite of illegalities and constitutional issues), merely reinforcing the view that the EU is rather complicit in the abuses perpetrated by Team Battistelli; the media in the pockets of oligarchs and litigation firms (fronting for these oligarchs) plays along, as usual


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