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Stop the Barron's Microsoft Series

Marek Fuchs

My Lord, do some articles make The Business Press Maven's soul feel like it's been sitting on a hardback chair for hours.

But first, a word about Rupert.

There is endless speculation today about what Rupert Murdoch might or might not do to Dow(n) Jones (DJ Quote - Cramer on DJ - Stock Picks) and its properties. I would actually be happy with one modest but needed change. It might not make News Corp. (NWS Quote - Cramer on NWS - Stock Picks) any money, but at least it will save unsuspecting investors some.

So, Rupert, please stop Eric J. Savitz from publishing any more major bull calls on Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks) in Barron's without at least making clear to investors how wrong he's been on these articles he's been rewriting for Barron's for so long.

Savitz, dutiful stenographer, was most recently seen taking dictation from Microsoft at its annual financial analysts' meeting about how it is indeed still a growth stock: "I have a question, Mr. Ballmer. How do you spell growth? And are you free later to edit my story?" I kid, of course. Sort of. Whatever the case, a business journalist swallowing a company line hook, line and sinker is so common that it's hardly worth a mention.

But when The Business Press Maven read Savitz's "Yes, Microsoft Is a Growth Company," dated July 30, 2007, I came down with a bad case of déjà boo (that's like déjà vu, only scarier). Anyhow, I let my fingers do the walking and, sure enough, pulled up this remarkably similar table-pounder by Savitz in Barron's called (you guessed it) "Sweet Future: Why Microsoft is still a GROWTH STOCK" (emphasis mine).

That particular story about how Microsoft was still a growth stock was dated July 26, 2004. Between then and now, it bears mentioning, Microsoft's stock price has been stuck in the mud, barely budging in a market that has flown to the heavens.

But a horrid call, even made twice, is forgivable. What got me was that somewhere else in my steel trap of a mind was the memory of yet a third big bullish profile in Barron's by Savitz about how Microsoft was, uh -- hey, you're really catching on here -- still a growth stock! That was titled "Pointing Up," from a bit over a year ago, April 3, 2006.

The Business Press Maven has a couple of concerns here. These articles appear written from the same template, without enough new information to merit such repetition, especially this latest one.

Stop the presses! A company stated publicly that it was still relevant! It is overkill, boosterism. Microsoft has a public relations department that takes care of that; it does not need outside help.

All articles in this collection (maybe I should market a collector's edition) start by talking about how Microsoft is misunderstood by investors before going on to make faintly similar cases for why the stock is ... c'mon, everyone together this time ... a growth stock.

In his most recent love letter to Microsoft, Savitz leads by saying that, while not many professional money managers seem to agree, "the nattering nabobs are dead wrong."

Last year, Savitz opened by talking not about nabobs, but for variation "the cynics" who thought Microsoft would keep "shuffling along." Wrote Savitz: "That would be a serious mistake. Microsoft shares, in fact, are among the technology sector's most alluring bets."

He was even more direct back in 2004, when The Business Press Maven still had his youth and looks. His first sentence was "When it comes to Microsoft, investors are missing the big picture."

Actually, Savitz, those nabobs and cynics seem to have a better handle on the situation than you, but that's not even the point.

The Business Press Maven, as (almost) always, sets the gold standard in business reporting. Does that mean that I am always right, a pillar of genius? Well, not exactly. But when I am talking about a stock I've been wrong about in the past, I will say, "Hey, I've been a dope on this one."

Look at my work on Oracle (ORCL Quote - Cramer on ORCL - Stock Picks), where Larry Ellison has apparently made it his personal mission to pull earnings beats out of his sail bag to prove me wrong. But every time I talk about the company, I let you know: I have spoken about this one before and have been wrong as rain. You can then form your own opinion about whether the reality I see affecting Oracle is just taking a little longer to unfold than I originally surmised or whether Ellison is fated to beat The Business Press Maven with one hand tied behind his jib.

Interestingly enough, Savitz did once mention one of his previous Barron's cover stories trumpeting Microsoft's stand that it is still a growth company. This came halfway through his campaign in last year's article.

But this week's installation in the "Microsoft is a growth stock" series contains no references to the other related articles. And that, Mr. Murdoch, makes my soul feel like it's been sitting in a hardback chair. Fix it.