We've accumulated many reliable references over the years and published what appears to be rather compelling evidence that aligns with what Bill Parish showed several years ago. Recently, as some readers may know, a Microsoft executive was jailed for embezzlement and at least two branches around the world closed temporarily over alleged misconduct. The massive buybacks, weighing at over $40 billion (potentially more to come, based on Reuters), left Microsoft with 'only' $26 in the bank. The company could soon enter debt and its once-mighty margins have fallen significantly. Microsoft has, according to Bloomberg, lost over $90 billion in value in the past year alone.
“Leaping backward to 1998, it is known that Microsoft operated at a loss back then...”Leaping backward to 1998, it is known that Microsoft operated at a loss back then, but this critical part of history is often forgotten or rewritten. It also may have led to Gates' departure from his role around that time. Steve Ballmer then became chief, but has anything truly improved since then? To what extent? The Internet/tech bubble is well behind.
The appointment of Liddell as a CFO (watch his personal background) and the inability to impress investors -- no matter the bucket games -- does not bode well, either. Over the past 2 quarters, Microsoft saw its shares sinking. Actually, we've indexed some references which we believe summarise the issue at hand. Isolated publications describe Microsoft as "scared".
Some people may believe that, to a greater or lesser extent, Microsoft can turn out to be another Enron. Some people have said (or at least suspected this) for years. It is not possible to make that allegation though (until it happens). Microsoft grows by buying companies and a lot of the wealth is actually centralised in bank accounts of top employees. ⬆
Update: A reader has just sent us the following insights (pump-n-dump): "It seems MS is doing the pump-n-dump out in the open now. If the books were audited how much of it's financial existence would be dependent on trading its own stock? The bubble may be popping."
Comments
Taddy
2008-08-07 11:39:47