“We maintain our Neutral investment rating on shares of Microsoft,” Stephen Turner reports for Hilliard Lyons via Barron’s.
“We have a suitability rating of 2 [‘A historically secure company which could be cyclical, has a shorter history than a ‘1’ or is subject to event-driven setbacks’] based on the company’s declining free-cash-flow generation which has negatively affected our discounted cash flow (DCF) model fair-value target,” Turner reports. “We believe significantly higher share prices in the near term are only currently achievable if management can reduce the company’s expenses, divest certain businesses, and continue to repurchase shares and boost the dividend.”
“We continue to advise investor caution on shares of Microsoft,” Turner reports. “In our opinion, significant risks remain going forward as the consumer PC market shifts to mobile devices; Office transitions to a subscription service; hardware sales negatively affect gross margins; the integration of a potentially declining Nokia [devices and services] business; and as Satya Nadella, the new chief executive of Microsoft, steers the company in a mobile-first, services-first direction.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
Satya Nadella, the new chief executive of Microsoft, steers the company in a new direction, and towards yet another iceberg. This one will be a keeper with ol’ Davey Jones though.
RMS Titanic went down this day, 15 April 1912
🙂 Now referred to as just the MS Titanic. A tech ship doomed to hit the bigger iceberg just ahead due to mirages on the horizon and incompetent Captains..
Wait for Apple’s very own Ballmer T Clown set to work destroying value. Clueless Cook & his posse of simpletons,
That’s fascinating, considering that no matter what Apple seems to do, their stock price goes down. For example, I can almost guarantee that no matter how much of a monster hit the upcoming iPhone 6 is, the market and those that speculate upon it will react in predicable bullish fashion.
Cook is a target of stupidity. He’s brought record breaking profits to Apple even with the stupidity all around in the market and anal-ists who don’t know tech from there A-hole.
They keep screaming for innovation but don’t understand that innovation is not a wave of a magic wand that can be done at request of stupidity. It takes a lot of time and a lot of work to make a new kind of product. If all companies were rated or reviewed by innovation then most would be considered total failures long ago. Why? Because most of these other companies have been copying, stealing, ripping off Apple’s innovation for the past 7 years. None of them know anything about innovation yet everyone blames Tim Cook at Apple. Apple wouldn’t be profitable if Tim Cook didn’t know what he was doing. Give him enough time those innovations that everyone keeps screaming about will come and blow you away. But let’s get real, it takes time. But the stupid anal-ists will keep screaming and putting Apple’s stocks down. Oh well. I don’t see any other company coming up with anything innovative right now. Samsung’s supposed smart watch is a fricking joke. Google’s TV’s are crap. Amazon just copied the Apple TV almost literally. Microsoft is totally lost there way. So scream all you want Tim Cook is doing a great job when you look at the competition I see no innovation either. First to market doesn’t mean its better and everyone knows that Apple doesn’t do first. It just does better and that’s what I’m waiting for.
Funny that you complain about ‘stupid’ people but then spell their ‘there’. You have the logic and debating skills of a walnut and the grammar of an illiterate baboon.
In the years following Jobs’ ouster from Apple the company did very well. It took time for the RDF to wear off, but wear off it did.
The same is happening again.
Cook is doing F-ALL to give us any confidence in Apple’s future.
OS X development is pathetic, Siri is useless, Maps is still a joke, app updates result in dumbed down garbage (read the reviews, it’s not pretty) while iOS looks like Japanese teenagers designed it.
Apple under Cook is more concerned with leftist political BS and lawsuits than innovating, and guess what; people are noticing.
Jackass.
Forums online are mostly populated by Nobama voters for whom mindless argumentum ad hominem is preferred to actual thought.
If it ever gets to the point where my views agree with the online ignorati then I know I’m screwed up.
One star this if you were ‘educated’ in a government school.
No, with iPhone 6, and sapphire glass – it’s only just begun. Please cue the music by the Carpenters
I see a troll, folderol !
“Beleaguered Microsoft’s hardships continue”
Boo. F’ing. Hoo.
I had a chuckle when the report said Microsoft’s margins were in jeopardy because they’re starting to sell hardware. Yes, they’re going from a 90% margin (not too hyperbolic, I hope!) for software sales to a hardware model with margins below 40%, which is historically how Apple has grow to be the world’s highest capitalized technology company. So, what’s great for Apple is bad news for Microsoft. Nice to see Microsoft is going to have to actually start working for its cash flow. They’ve skated on their monopoly cash flow for too long.
Exactly, Dave. Bill Gates’s brilliant stratagem to licence software made him and his cronies billionaires. Those easy days are grinding to a halt. It’s a new, brilliant day, the harsh sun now desiccating the bodies of these crawling toads with hard radiation.
lol, these crawling toads?
Well, in New Mexico we have these toads that get stranded between ponds rapidly drying in the sun, and it made me think of Bill Gates. The mind can form strange associations…it’s not exactly poetry, more like revenge fantasies…
oh okay, I think Microshaft was first incorporated in NM or something?
New Mexico is where I happen to live at the moment, when I’m not in Boca Raton or Dover. Doesn’t everyone repair to another residence with the changing season?
don’t forget lunar eclipse later tonight! I’ve got my handydandy telescope set up out front. Will try to catch some of 3l3c7ro’s relatives on video if I see any.
That poor man is valiantly trying to change the world single-handed, yet you and other ruffians bully him mercilessly. Does he emit some lexical pheromone I fail to detect?
yes, terminal anal retentiveness.. there is no known cure.
I hate to say this, but…LOL
I’m a delicate flower.
Delicate flower, my sweet ass. Cactus, more like. They flower whilst taking no prisoner.
lol, hey check this out, you don’t even have to get out of your jammies to watch:
http://www.ustream.tv/channel/nasa-msfc
OK, I get it now. We live and die by the moon, you watch dispassionately through your Galilean instrument. Men.
Don’t really appreciate MDN’s website randomly sending me into some stupid game to buy in iTunes.
Sometimes it beats actually being on this website.
Hmmm I just posted something that had to do with ads on this site (no profanity, etc.) and got a message I’ve never seen before: “Your comment is awaiting moderation.” Interesting.
It’s not MDN, it’s something affecting websites all over the place, something to do with code placed in adverts designed to take you straight to the App Store. Royal PTA, too.
A d b l o c k on the desktop seems to stop it. MDN doesn’t seem to like the “A” word mentioned as it blocked my previous comment about it.
That rambling tryst by ‘botvinnik’ and ‘hannahjs’ made me throw up in my mouth: I had a vision of John Boehner and Nancy Pelosi french kissing.
Wow, talk about dying toads! That picture is just made me go projectile.
an unremarkable post from the Salieri of MDN commenters…gee, and I was going to ask you to be my best man.
Hey, I never claimed to be another Mozart.
oh, it’s you.
Sarah Palin’s spokeswoman indicates a willingness to ‘think about’ the bridesmaid position
great! Maybe we can get the Koch Brothers to cater.
Tsk … Tsk!
But, but, but Microsoft understands the value of a keyboard on your phone. 😉