[Am-info] Microsoft and Merrill Lynch

[John J. Urbaniak]

John Poltorak wrote:

> Is there a close tie up between Microsoft and Merrill Lynch?
>
> ISTR an article in the last couple of weeks where the sudden rise of
> Microsoft stock price after the announcement of disappointing results
> could be attributed to comments made by Merrill Lynch.

This is absolutely true.  I watched CNBC.  After the market closed, I
think it was April 17 (give or take a day), Microsoft announced earnings
which came in 2 cents *below* estimates.  I watched the ticker tape for
after hours trading.  MSFT plummetted, down $1, then $2, then ... then
over $4.50 to about $51 per share.

Then some "analyst" from Merrill announced that ~if you exclude X-Box
losses and certain MS investment losses, the company actually did pretty
well.~  They rated MSFT a "strong buy" and predicted the stock would
reach $65.00

The stock turned around and by the next morning, it was actually *up*
about 50 cents from the official close the day before.

A week or so later, Goldman Sachs rated Merrill a "strong buy."  I
thought that was interesting.

MSFT closed Friday at $49.50.

Remember, Merrill Lynch is under intense scrutiny by Elliott(SP?) Spitzer
for what I call "analyst manipulation."  Spitzer is the AG for New York
State.  He actually has e-Mails indicating that Merrill "analysts" were
recommending stock buys to their customers, while at the same time
telling other analysts that the stocks they were recommending were dogs.
Spitzer is negotiating with Merrill execs.  I imagine the whole thing
will end up buried somehow.


I've thought for a long time that there is an incestuous relationship
between companies and so-called "analysts."  In fact, I have always
believed that the deal between Microsoft and Gerstner, when he killed
OS/2, involved an "analyst" recommending IBM as a strong buy shortly
after Sir Lou announced that "OS/2 is just for the top 2000 customers,"
which effectively killed OS/2.  I'm not sure of the time frame, but I
think it was around 1996.

I believe the deal was this:

1.  Gates and Gerstner come to agreement.  Gerstner kills OS/2 and agrees
to service Windows with his "Global Services Group."  Gates agrees to put
in the good word for IBM and give IBM some inside information on Windows
and NT.

2.  Gerstner makes the announcement and Gates gives the word to his
"analyst" buddies.

3.  The "analysts" praise IBM and issue "buy" recommendations.

4.  IBM makes lots of money servicing Windows and NT.  IBM stock rises
and Windows becomes a monopoly.

5.  Gerstner gets rich on his IBM stock options and is named a Knight.

>
>
> Does anyone have a link for that?

Look around the dates I mentioned above.

Do a Google search on "Merrill Lynch Microsoft"  You'll see lots of
interesting connections between MS and Merrill.

John