In about 10 years this stock will have a div yield of close to 7% if they keep on raising divs like they have so far. I think we can see post tech bubble level prices but not anything below that rationally (irrationally the market can way undervalue this stock for a short period of time). $17 after the tech bubble seem about the right pricing for the stock. Forward 8 years and we are at $19 right now and I would have to say it's undervalued considering their income has been growing by 10 billion each year from 2004.
I can see how this should be good for YHOO stock (provided you bought it way down here) - but for MSFT this acquisition means either flushing their cash pile or taking on big big debt - all at a time when their fundamental business model is being wrecked by cheap PCs (freakin' "netbooks" are selling like there's no tomorrow (which may even be true this time!)). Anyway, I took YHOO in single digits for the takeover play, I expect the gains in YHOO will come directly from the hide of MSFT shareholders. But who knows - maybe we'll all be able to profit.
bill gates is no longer ceo and hasn't been ceo for a long time, as far as i know steve jobs is ceo and chairman i believe bill is only on the board... either way microsoft has gotten to a point where all they can do is churn out new operating systems that look nicer and integrate our digital worlds in a more efficient manner - therefore i see very little possible innovation left on that front. steve jobs on the other hand is in the business of cut throat consumer electronics where you have to be on the bleeding edge of style and functionality therefore if his brilliant mind left that company than apple will be the greatest short on the planet.
Added MSFT. At this rate, I will have given back all my gains in MSFT soon. I start to hurt at MSFT < 16.
This is one key reason MSFT stock price has been so frustrating lately: http://www.computerworld.com/action...Name=Windows&articleId=9121938&taxonomyId=125
What do you think about MSFT Nitro. Do you think it is poised to test 14.75 and would you be willing to hold if it does. Short3r
Gulp. MSFT goes mostly wherever NQ goes. If the market goes much lower, MSFT is dragged there, kicking and screaming. Where it lands, I don't know.
I put on a spread, S MSFT L CTXS. For those that know the past history of these two companies, you might see what I see. Imo MSFT takes out CTXS, and it does so for a 50% premium over the current stock price. All cash deal (important if you are going to play this with options.)
yeah I own MSFT not AAPL but yeah steve jobs is defiently a lot more important to apple than gates is to msft.
Added short. MSFT is now ~$3.00 overvalued, imo. As soon as it goes on the cross hairs of index arbs, it is toast.