Cyrus_the_virus
Unmountable Boot Volume
It almost feels like covering an old story, so herein we mention only a few new developments and reference the rest at the bottom.
As many have realised before the week ended, Microsoft is not in a good shape. It’s nothing like it used to be, but Microsoft goes out of its way to keep up appearances, even using aggression. Perceptual momentum is essential for growth through customer obedience and investor confidence.
Just as predicted, Microsoft emhasised revenue, which the massive acquisitions make rather meaningless (buying revenue is easy at the expense of savings). Those who have read this site for a while might not be surprised, but the Microsoft-owned press can be hugely self-serving, i.e. deceiving. Contradictions to it can be painted black… like a black sheep that Big Lies make possible.
Microsoft shares fell sharply, just as they did in the previous quarter when profits fell and Microsoft was no longer able to pretend and conceal its pains. This marked the beginning of a stage where we are likely to see Microsoft’s estimates and forecasts lowered and then potentially missed again and again. Recall the fact that Microsoft lowered its projection in the last quarter (and missed them again).
When looking at the financial results, do not ask what Microsoft wants to show you and get journalists blinded by. Ask what it is not telling you. It has plenty to conceal. Being a large company, it can do a lot of division- and bucket-shuffling to impress investors. Here is just one old example: Microsoft Hides Its Mobile and Business Apps DivisionsFor details about Microsoft’s financial game, see some of the many previous posts (listed at the very bottom).
Let’s take a quick look at some of the realistic (in-depth, as opposed to ‘Microsoft parroting’) press coverage that Microsoft received at the end of the week.
The Bad
Buying lots and lots of companies (wasting money) for increase in revenue and employees just makes the company clumsy and overweight. John Dvorak opines that the strategy of the company as a whole is misguided and hubris-driven.We wrote about the Microsoft-Icahn duo before. They are now visibly united as they carry on with their planned proxy war. It does not help Microsoft in any way because it makes it look bad, never mind the distraction it causes.Yahoo is now also using its Web space to attack Microsoft and Icahn, apart from describing the latter as a corporate agitator. It’s not good for business.
The Sad
Even the Microsoft-associated financial Web site, Motley Fool, comes off with the headline: “Whither Microsoft?”In some ‘mainstream press’ articles, the economy as a whole takes the blame (Microsoft too tried to use that as an excuse). Examples:
It may run deeper than this. Consider some new observations, as follows.
The Online Unit does badly:The entertainment unit too has some serious trouble ahead. Relative sales of XBox 360 fell sharply in the month of June and the company seems unlikely to recover, even with considerable discounts. The XBox division/unit has lost about $7 billion since 2001 and other products like the Zune seem to be approaching death.On the Microsoft Office division:“Fear, uncertainty and doubt” are blamed also:Lastly, The Ugly
As the links at the bottom will show, there’s a lot in Microsoft’s past about financial irregularity and misconduct as well. And fresh from the news:Remember what Robert Bach, a Microsoft Vice President, did last year while escaping investigation or punishment.
And wait! Watch this newly-disclosed gem (Microsoft’s mortgage issue) from a source that is close to Microsoft:
“Sadly, many of these brilliant people have been blinded by the stock price and unable to see that Microsoft is also the key architect of the greatest financial pyramid scheme this century.
“It is not uncommon for participants in pyramid schemes to lose their emotional bearings. My close friends who work at Microsoft are particularly upset over my work and it is possible that even Bill Gates and Steve Ballmer do not realize the implications of their financial practices.”
"Microsoft has clearly entered a phase of self destructive behavior that began with the “tissue paper campaign” in 1995. This report will document this campaign for the first time.”
As many have realised before the week ended, Microsoft is not in a good shape. It’s nothing like it used to be, but Microsoft goes out of its way to keep up appearances, even using aggression. Perceptual momentum is essential for growth through customer obedience and investor confidence.
Just as predicted, Microsoft emhasised revenue, which the massive acquisitions make rather meaningless (buying revenue is easy at the expense of savings). Those who have read this site for a while might not be surprised, but the Microsoft-owned press can be hugely self-serving, i.e. deceiving. Contradictions to it can be painted black… like a black sheep that Big Lies make possible.
Microsoft shares fell sharply, just as they did in the previous quarter when profits fell and Microsoft was no longer able to pretend and conceal its pains. This marked the beginning of a stage where we are likely to see Microsoft’s estimates and forecasts lowered and then potentially missed again and again. Recall the fact that Microsoft lowered its projection in the last quarter (and missed them again).
When looking at the financial results, do not ask what Microsoft wants to show you and get journalists blinded by. Ask what it is not telling you. It has plenty to conceal. Being a large company, it can do a lot of division- and bucket-shuffling to impress investors. Here is just one old example: Microsoft Hides Its Mobile and Business Apps Divisions
Let’s take a quick look at some of the realistic (in-depth, as opposed to ‘Microsoft parroting’) press coverage that Microsoft received at the end of the week.
The Bad
According to an analyst quoted by The Street, Microsoft is “not doing well on the earnings front.”
The Sad
Even the Microsoft-associated financial Web site, Motley Fool, comes off with the headline: “Whither Microsoft?”
- Microsoft CFO says company facing “tough environment”
- Microsoft Issues Error Message With Forecast
It may run deeper than this. Consider some new observations, as follows.
The Online Unit does badly:
As the links at the bottom will show, there’s a lot in Microsoft’s past about financial irregularity and misconduct as well. And fresh from the news:
And wait! Watch this newly-disclosed gem (Microsoft’s mortgage issue) from a source that is close to Microsoft:
Criticism, if any, should be directed at the sources, not the messengers. The truth will come out one day.
“Sadly, many of these brilliant people have been blinded by the stock price and unable to see that Microsoft is also the key architect of the greatest financial pyramid scheme this century.
“It is not uncommon for participants in pyramid schemes to lose their emotional bearings. My close friends who work at Microsoft are particularly upset over my work and it is possible that even Bill Gates and Steve Ballmer do not realize the implications of their financial practices.”
–Bill Parish
"Microsoft has clearly entered a phase of self destructive behavior that began with the “tissue paper campaign” in 1995. This report will document this campaign for the first time.”
–Bill Parish
Source
M$ will like to have the bombay kid in our forum!
