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jmwills

WHS 2011 for $44.99 and MS stock price

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ImTheTypeOfGuy

I don't agree on the stock price. Look at the chart below and you can see it has gone nowhere over this time. I do agree that there have been general market conditions that have impacted this, but at some point the guy in charge has to take some blame and not pass it on to things outside his control. I would also say Apple is WAY over priced, although I would not short the stock enough though it's only a matter of time before it does make a correction.

 

msstock.jpg

 

 

I feel you on the battery life. My Samsung Galaxy S needs to be charged a couple times a day, although I do use it pretty heavy. Still, I will not be getting an iPad but may get the Samsung tablet for my wife.

 

 

That is only half the picture and is why I made the comments above. You can't go purely by stock price, at least not if you want a thorough and intelligent review of their performance. Now go back and look at the quarterly earnings reports from the 90's compared to the 00's and then rethink your position. Their earnings are just as strong as they were in the 90's. Yes they have killed themselves on things like tablets (which MS invented) and the smart phone. Regardless of that though, they have been making a ton of money. I believe if pure speculation wasn't at play, their stock price would still be climbing.

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ikon

out of curiosity, how have the stocks of other major, mature companies done. I don't count Apple in this because their market strategy has changed so much in the last decade they're really not a mature company any more, are they?

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ImTheTypeOfGuy

out of curiosity, how have the stocks of other major, mature companies done. I don't count Apple in this because their market strategy has changed so much in the last decade they're really not a mature company any more, are they?

 

I obviously don't know about all of them but ExxonMobil is another example. I am sure everyone is aware about them setting record revenue and profits but their stock was relatively flat as well during their record earnings periods. It didn't start increasing until April or May this year.

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jmwills

One possible explanation for the price drop is the Apple OS X Lion Server as described in this article over at We Got Served. Personally, I don't buy into that theory. If I have to rely on Apple to provide a server solution, it's time to fold the tent.

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geek-accountant

out of curiosity, how have the stocks of other major, mature companies done. I don't count Apple in this because their market strategy has changed so much in the last decade they're really not a mature company any more, are they?

 

A lot of stocks are in the same boat and many of them should have to answer the same question to their shareholders, "why should anyone invest in your company if you stock has gone no where for more than 10 years?". Now, personally, I have done quit well, more from luck than skill, and bought a lot of these companies when they all dipped. Even my MS investment is up 29.1% as of today from when I bought it on 3/5/09, which is a little less than 10%/year, not bad, but not great either. The question for me is why should I continue to own this stock? Especially now that I am getting nervous about the amount of downside risk vs upside risk. Time to dump some of the low performers, take the gains and wait for another opportunity.

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jmwills

Both Microsoft and Apple are like printing presses when it comes to making money. Both companies do quite well despite their leadership. Even I bit my lip and bought Apple stock a couple of years ago at $90 and sold at $180 thinking it could not go much higher or waiting for a split. Bad decision.........

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geek-accountant

Buying at $90 was a good decision. While it may go up even further, no way I would buy at these prices. While they may not be too over priced based on PE or PS, their current value is to risky for me.

 

jmwills, never worry about where you are with an investment, only worry about where it will go from it's current point (tax planning issues aside). Also, don't dwell on bad decisions, it happens. If you got out with a profit, it was a good investment.

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ikon

hmmm, the philosophy for buying stocks has sure changed. When i was a kid people bought stocks for dividends, not cause the price would go up. IMHO, it has led to many of the problems we have today. People expect stocks to go up and up forever, which makes no sense for well established companies. It encourages all kinds of risk taking instead of rewarding companies that have proven themselves over time. But, hey, I'm Canadian... what do CDNs know about stocks......

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geek-accountant

We may not like it, but it has changed. Dividend is one reason to buy stocks, when I picked up GE during the crash the yeild was over 8%. Thats pretty good for a dividend. But in many cases, we can't trust the company to continue to honor the dividend so you can't use that as the sole decision to buy or hold a stock.

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Joe_Miner

I buy very little in the way of individual stocks and focus instead on no-load mutual funds. Your return from the time of any purchase to the point of sale is determined by by dividends AND price appreciation over the holding term.

 

A good resource for individual investors is the AAII (American Association of Individual Investors) at http://www.aaii.com/

 

Another good resource, IMHO, is Buffet's annual letters to shareholders -- you can find some pretty good summaries by doing searches of "Motley Fool Buffet"

 

My advice to my son was never invest in anything you couldn't do your tax filing for yourself.

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