Just when you think you've found a fool-proof business, a better fool evolves to mess things up. I've long thought that Microsoft (Nasdaq:MSFT)
shares seemed much too cheap, but held off on buying for fear that
ongoing operational shortcomings would obscure that value. With a fiscal
fourth quarter that was weak across almost every metric, it looks like
that has come home to roost.
Although I think the base Windows, Office, and server/tools businesses
are still valuable, it's increasingly difficult to trust management to
adequately execute or communicate their plan. So while I still think
these shares are too cheap on a cash flow basis, it's likely going to
take something more dramatic than another reorganization or
stabilization in the PC business to get these shares closer to fair
value.
Please follow the link for more:
http://www.investopedia.com/stock-analysis/071913/another-bad-quarter-highlights-microsofts-growthvsvalue-problem-msft-ibm-orcl-nok.aspx
No comments:
Post a Comment