Re: Today in stocks

Gregory Alan Bolcer (gbolcer@endTECH.com)
Tue, 09 Nov 1999 11:03:29 -0800

If Microsoft had been spinning off and growing each of it's profitable
pieces the past 8 years as so many companies do, the world would be
a tremendously better place and have had a much more growth-oriented
business model, IMHO. Dman the valuations, full speed ahead. ;-)

Greg

Ciamac Cyrus Moallemi wrote:
> It's not clear that this is true. According one analyst:
> http://www.herring.com/insider/1999/1108/inv-msftvalue.html
> 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.

-- 
Greg Bolcer
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