[Am-info] MSFT a loser

Hans Reiser reiser@namesys.com
Tue, 23 Nov 2004 11:09:14 -0800


John J. Urbaniak wrote:

> Hans Reiser wrote:
>
>> John J. Urbaniak wrote:
>>
>>> Has anyone noticed?
>>>
>>> Microsoft stock is priced today at about $26.50.
>>>
>>> That's a few dollars *lower* than the stock was four years ago.  It 
>>> was selling for about $55 back then, but it split 2 for one, making 
>>> the price about $27.50.
>>>
>>> Anyone who bought stock in the genius Bill Gates's company four 
>>> years ago lost money.  And the stock has been a big pig ever since 
>>> then.
>>>
>>> I hearby officially declare MSFT a LOSER!!!
>>>
>>> John
>>>
>>>
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>>>
>> Is the PE ratio still high?  What is it these days?
>>
> P/E is roughly 36.  Pretty high for all but a "growth" company.  MS 
> shows no signs of being a growth company.
>
> John
>
>
>
>
That's a much lower P/E ratio, so the market is starting to discount MS 
gradually.  I expect a 25/1 ratio in 5 years, assuming they don't 
implode suddenly due to Linux.