Friday, July 23, 2004

MSFT, and I sold PETM

First of all, as you all know I am very high on PETM. Well I sold all the PETM I had today. I needed the money to buy more CD which went on massive sale today. Which illustrates investor psychology. CD released RECORD earnings this Quarter. Not only that but it shattered analysts expectations buy several cents per share. Plus they are shopping around their mortgage business (trying to sell for 750M to 1B). Yet the market as a whole has been crushed in the last week or guess is its due to dismal Earnings season for S&P companies. So that's that.

Now lets get on to Microsoft. Amazing move on their part. They had too much cash. Too much cash? Yes, they are a monopoly. The only thing they could use their cash for was to buy more companies, which would solidify them as a monopoly. So they had to give it back to shareholders. Excellent move. An even better move is buying back their own stock. This is showing me that they have alot of faith in themselves. If any of you read Mark Cuban's blog (which I am obviously fond of) he disagrees with me. So I emailed him about it. And he replied!!!! I got a billionaire to reply to my ideas! I can not tell you how much that meant to me, and it only took a few seconds out of his day. I still disagree with him, but he has made billions, I don't even have a million, yet.

Also, since I share some of my good stock ideas, its probably fair if I share EACH bad idea I've had. I thought MSFT would go up 20% in the 2 days following their news...but it didn't. It behaved rationally. By rationally I mean that it did not rise $3 per share higher then what it was at before the news. If it had then it would be OVERVALUED because you would be paying more than $3 for a $3 dividend. So I was wrong. (I like to pride myself that in the stocks that I have had a position in I have never been wrong.) But I was wrong in this case, and in thinking Netzero would revolutionize the internet 6 years ago...they never did.

Anyways, I congratulate Microsoft on what they are doing with their cash. I think it is the right move.

I have had alot to say this week, but haven't been able to because my work had locked out this website...I wanted to rant on Sprint, public speaking, and a fw other things...I guess it'll have to wait.


Post a Comment

<< Home

Website Counter
island drafting and technical institute