[Am-info] Bad day for BabyGates

[John J. Urbaniak]

MSFT closed down $3.08 to $57.30 today.  Rick Sherlund of Goldman Sachs
revised earnings estimates for the company downward.

I'm in Pittsburgh, but I can hear Gates crying all the way over here.
"Boo-hoo, I hate my job, I hate my life.  They're all picking on me.
Sob, sob, sob."

How long will Microsoft be able to sustain the incredibly high p/e ratio
(currently 52.56, even after the drop) for its stock?

When the p/e becomes more reasonable, like historically normal 15-18,
MSFT will be selling at less than $20.00 - when that happens, we'll see
employee lawsuits which will cause the stock to drop even more.  These
Microsoft employees live in expensive Seattle houses and drive expensive
cars, with big, expensive mortgages and monthly payments.  Their MSFT
options are becoming worthless.  They'll sue. Some shyster lawyer will
represent them because there's big money to be made.  But the lawyer
will get most of the money, the Microsoft employees will get a pittance.

Then we'll see the stockholder's lawsuits.

Remember, MSFT has never paid a stockholder dividend.  Pretty soon now,
these big funds which are heavily long on Microsoft, will wake up and
realize that they could do a lot better putting their money in a bank.
When the stock crashes, it will be blamed on Gates, and justly so, for
incredible mismanagement of the company.

Good for BabyGates.  Now he'll get a taste of the pain and agony he's
caused so many smaller companies, their employees, their customers,
their partners and their stockholders.

He's in for a long run of very bad luck.

John