Post Tagged with: "Microsoft"

On the Microsoft – Nokia merger

On the Microsoft – Nokia merger

I have been saying for two years now that Nokia is toast because it has hitched its wagon to an also-ran in the smartphone race. The only out for the company is a takeover by Microsoft and now this is done. Will it work though?

Read more ›
I like Microsoft’s new corporate strategy but execution is key

I like Microsoft’s new corporate strategy but execution is key

Microsoft announced a major strategic overhaul yesterday, shifting to a ‘One Microsoft all the time’ organizational structure. Now, all of Microsoft’s business are in five main functional silos irrespective of platform. I applaud the move. However, while the strategy is the right one, the crux of the matter will be execution.

Read more ›
More on Microsoft’s mobile strategy

More on Microsoft’s mobile strategy

Microsoft is getting a bit of black eye in the press due to its about face on the Ambitious Windows 8 platform change. While the unit numbers match up well against Windows 7, there has already been quite a bit of noise about how steep the learning curve is for the operating system. Apparently, Microsoft agrees and is doing a major re-vamp. SOme people are calling it the biggest consumer product about face since New Coke. Could be. The question is whether Microsoft is making the right moves and whether this will keep the stock from floundering. I think these are the right moves and I will explain a bit why below.

Read more ›
On the demise of Nokia and more on the move to the Cloud via Adobe

On the demise of Nokia and more on the move to the Cloud via Adobe

I have a few threads on tech that I am going to breakup into multiple posts here. The first two threads are on Adobe’s move into a cloud computing-only based software model and on Nokia’s dogged pursuit of the windows mobile platform, now going down market into the bargain basement bin. Both of these are important signposts on where the technology industry is headed and how future business will be conducted everywhere.

Read more ›
The Consolidating World of Technology, Media and Telecommunications

The Consolidating World of Technology, Media and Telecommunications

What I am seeing is a second great wave of consolidation in the industry. And by that I mean that every large company is getting into the traditional space of every other large company. Let’s go down a sample list of some of the changes that are afoot.

Read more ›
On Microsoft’s mobile strategy

On Microsoft’s mobile strategy

An investment in Microsoft has been dead money for quite a while now. The stock has traded in a pretty narrow range between $22 and $32 except in late 2007 and 2008 during the financial crisis when it spiked and then plunged. The stock does sport a dividend of 92 cents a share, which is about a 3.3% yield. If you figure that Microsoft is dead money for the next few years still, then that certainly beats Treasurys. But given the increased risk, it’s nothing to right home about. SO what about Microsoft’s strategy makes it more than dead money. Let me offer a few suggestions here.

Read more ›
Excess cash on the balance sheet is wealth destruction

Excess cash on the balance sheet is wealth destruction

Many of the largest technology companies are making so much money that they are rapidly accumulating cash on their balance sheets. While on could argue that this cash should be stripped off the balance sheet for valuation purposes, I would argue that the cash is worth less than face value because having excess cash on the balance sheet is an invitation to wealth-destroying acquisitions. The excess cash should be returned to shareholders as quickly as possible in the form of dividends or share buybacks to prevent such an outcome.

Read more ›
Daily: Does Microsoft have its mojo back?

Daily: Does Microsoft have its mojo back?

In the tech world the big news is Microsoft’s unveiling of the Surface Tablet and Windows Phone 8 on back to back days. There is a lot of positive buzz around these two initiatives. The question, of course, is whether it will vault Microsoft into the big leagues in the mobile arena. As a stock, Microsoft is reasonably priced with a P/E of 11x and a dividend yield of 2.6%. Any additional bump in the high growth mobile space will be a big positive for Microsoft’s earnings growth and it makes Microsoft a company to reckon with in tomorrow’s big markets via its Xbox, tablet, and phone offerings. But the news doesn’t just affect Microsoft, it is a big deal for Nokia as well as Nokia is now tied at the hip to Microsoft in the mobile space.

Read more ›
Will Nokia’s Windows Mobile Phone Deliver?

Will Nokia’s Windows Mobile Phone Deliver?

Mashable says the Nokia Lumia 800 could be the best Windows Phone yet. The Wall Street Journal is a little more sceptical of Nokia’s Windows Mobile phone launch though. Take a look.

Read more ›
Cashmore on Technology’s Paradigm Shift

Cashmore on Technology’s Paradigm Shift

Here’s an interesting conversation about social media and Internet and technology companies’ adjustment to it.

Read more ›
Microsoft: $8.4 Billion Down the Drain

Microsoft: $8.4 Billion Down the Drain

Though, in the eyes of Microsoft executives, virtually any outcome might seem better than letting the company fall into the hands of Google, which still has no strong foothold in social or communication software – one of the few online areas where Microsoft still maintains a market share advantage. Unfortunately for shareholders, anything less than a stellar success might just look like billions more flushed down the drain in Microsoft’s thus far failed bids at online dominance. Even if the company can quadruple the size of Skype’s business, they will still be losing money online if nothing else changes and they will have only added a few percentage points to top line growth – neither of which is likely to move to stock price in any major way.

Read more ›
When will large cap tech stocks start paying dividends?

When will large cap tech stocks start paying dividends?

I would argue that this is evidence that these companies are wasting shareholder capital by plunking down for splashy acquisitions and large new capital investments that are not paying off. Cisco and Microsoft have huge cash balances waiting to be deployed. This money can go to buying back shares at inflated prices or making acquisitions of dubious value to shareholders. The right thing for these companies to do is not necessarily just restructure but change their mindset and accept that the glory days of top line growth are over. First and foremost this means increasing the dividend payout to match other sectors of the economy.

Read more ›