Redmond has awoken and the furnaces have been jerked into life, steam and smoke appear above the forest’s treeline.
Two large corporations that have announced amazingly stupid and borderline suicidal things are now reconsidering. This is a good thing as it shows that there may just be hope after all and that common sense may still exist.
Microsoft’s “cheapness” is the White Whale that compels all value investors to follow it out to sea, like crazed Captain Ahabs wielding DCF calculations.
Hewlett-Packard is a 72-year old Dow component and until a year ago, it was one of America’s most innovative and valuable technology companies. Now it looks like death, mostly as a result of getting tech cycle stuff wrong and making a criminally pour choice in leadership.
My suggestion for The Street would be to start referring to their equity analysts as “business analysts”.
With many solid companies trading at depressed multiples, we’re still in a very target-rich environment.
The picture is not pretty, but with Michael’s added $150 million vote of confidence purchase this week, perhaps we’re all missing something.
Visual Economics on Green Biz in America.