Here's exactly what I wrote on Wed., Oct. 4:
I am close to taking the small profit and unloading MSFT. I will write about the stock this week on TheStreet , but I'm no longer bullish. If it closes below $30, I would definitely sell. That said, there's probably no reason to wait, though it might make for a nice trading stock once Windows 8 comes out and provides some news-driven artificial bumps.
My kid could have seen it coming.
On the Oct. 4, MSFT closed at $30.03. On the 5th, it finished below $30.00 (at $29.85) and it's been all downhill from there.There's not a nicer way to say it. The stock is trash. And the company that floats it is little more than a receptacle -- the black bin, not the nice blue one for recycling or the green one for compost. The one-trick revenue pony known as Google (GOOG) doesn't rank far behind. Both companies will have their heads handed to them in what amounts to self-constructed "battles" and "wars" with Apple (AAPL). As great as Apple has been, you really have to chalk up some of its success to pathetic competition. Most of the "opposition" doesn't even deserve a mention. They're akin to the high school football team that shows up to a game without enough players to field a team. They take the field and the referees just sigh and send everybody home. Outside of Samsung, you have Microsoft and Google. While you have to call them Apple competitors, there's little reason to respect them in the process. Consider recent developments. Microsoft CEO Steve Ballmer recently noted that his company will continue to look more like Apple. In fact, it might follow up xBox and the Surface tablet with a smartphone. He's even using the word "ecosystem" now. Earlier this week, TheStreet's Chris Ciaccia noted reports that Microsoft intends to make Office available on iOS and Android devices. During an All Things D interview, Google Chairman Eric Schmidt almost made me spew my morning beer out my nostrils in laughter. Schmidt told Walt Mossberg and Kara Swisher that "The Android-Apple platform fight is the defining fight in the industry today." He then called "you guys" -- you know, us peasants -- the beneficiaries, citing lower prices.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV