Steve Ballmer Admitted Microsoft is Absurdly Overvalued
- Dr. Roy Schestowitz
- 2008-09-22 13:12:09 UTC
- Modified: 2008-09-22 13:12:09 UTC
"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).
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Comments
Needs Sunlight
2008-09-22 15:39:41
AlexH
2008-09-22 16:13:51
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.
Roy Schestowitz
2008-09-22 16:18:55
Roy Schestowitz
2008-09-22 16:19:53
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.
AlexH
2008-09-22 16:24:13
Roy Schestowitz
2008-09-22 17:01:14
AlexH
2008-09-22 18:00:43
Pumping stock is illegal. If you're saying they're doing it, that's an accusation of fraud.
Where are the validated facts?
Roy Schestowitz
2008-09-22 18:05:08
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
AlexH
2008-09-22 18:13:02
Stock buy-backs do elevate the price, and rightly so. You should read the link I posted earlier.
Roy Schestowitz
2008-09-23 16:27:48