Larry Qualig wrote:
> > > Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> espoused:
> > >> The Broken Dynasty
> > >> ,----[ Quote ]
> > >>| Microsoft and Oracle are big companies. Oracle is currently worth
> > >>| $95 billion, and Microsoft is worth $270 billion. In 2000, they
> > >>| were even bigger. Oracle was valued close to $200 billion and
> > >>| Microsoft at more than $500 billion.
>
> > For MS's sake vista had better be one hell of an OS. Sadly, for them,
> > it won't be. Same fundamental security design faults. MS are truly
> > doomed. 2013! Not a chance. MS will crash far faster than that.
We can only hope that Mutual funds, pension funds, and 401K managers
have divested themselves of Microsoft stock before Vista is released.
> So what does this say for the future of OSS/Linux companies since they
> are doing much worse?
>
> Novell (NOVL)
> 2000 = $13.5 Billion
> 2006 = $2.1 Billion
> 84.4% Decline
>
> Sun Micro (SUNW)
> 2000 = $223 Billion
> 2006 = $17.6 Billion
> 92.1% Decline
>
> VA Linux (LNUX)
> 2000 = $13.1 Billion
> 2006 = $0.25 Billion
> 98.1% Decline
The problem with ALL of these numbers, including Microsoft's, is that
all of the "highs" in 2000 were taken just BEFORE the tech bubble
burst. I'm surprised that nobody mentioned Red Hat, with a high of
$275 /share in 2000 and $25/share today.
On the other hand, if you look at market fundamentals, revenues,
profits, and profit margins, most of these companies are actually doing
better today than they were in 2000.
The Bush administration pretty much pulled the rug out from under the
tech stocks, and the Texas Oil man (who kept drilling dry holes and
made his fortune by partnering with the Bin-Laden family) decided to
ignore warnings of terrorism, decided to declair war on Iraq, and
decided to publicly prosecute high ranking officials for securities
fraud.
All of these factors combined to create one of the biggest stock market
crashes since 1929. Most investors and mutual fund holders lost 75% or
more of their personal net worth in equity.
As interest rates went down, housing prices went up, and people
borrowed against this imaginary equity. Then, as interest rates went
up, house payments increased by as much as 50%, and people had to raid
their equity accounts to pay off personal debt.
Not all of this is the fault of the Bush administration, but the
combination of ignoring securities fraud during the 1990s, combined
with ignoring brokerage fraud and questionable lending practices in the
last 7 years has made the pool of money available for equity investment
about 1/10th what it was in 2000. The major indicators have gone up,
but the average personal net worth in 401k, IRA, and Pension accounts
has dropped to the point where the government is almost ready to
encourage baby boomers to start drinking, smoking, and staying
overweight - just so we'll die sooner. Because there is no money for
retirement.
But Billy still has HIS billions.
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