Re: Today in stocks

Ciamac Cyrus Moallemi (
Tue, 09 Nov 1999 13:36:45 -0500

At 04:16 PM 11/8/99 , you wrote:
>As to MSFT, they're probably a great buy also thinking about what happened
>to all the telecom stocks after they broke up. Investors got shares of each
>local company which turned out to be a gold mine.

It's not clear that this is true. According one analyst:
if you split Microsoft and valued each piece based on revenues (presumably
applying the proper multiplier for each segment), you'd get:
platforms, $57 billion
applications, $55 billion
Internet pieces, $245 billion
cash on hand, $18 billion
unearned revenue, $4 billion
or less than $400 billion, vs. $450 billion current market cap. The article
makes the point that Microsoft should not be compared to Standard Oil or
AT&T because its assets (installed user base, brand, management team, etc.)
are worth less when divided.