This column was originally published on RealMoney on July 29 at 11:56 a.m. EDT.
Those who fear
take action at their own peril. That's my takeaway from
breaking out to a new high today, just three months after hitting a nadir because of worries that Microsoft was going to give away a McAfee-killer. If you held on, you've picked up 10 points while others fretted about the Redmond giant's plans.
You know it was only 15 years ago that people revered
the way they revered Microsoft. For years, people used to sell
every time IBM announced a new initiative in chips. They would sell anything software anytime IBM announced a new initiative in that field, even Microsoft. Personal computer stocks would shudder at the mention of an IBM innovation. The data processing and storage companies like
would lose a quarter of their value at the mention of a rejuvenated IBM.
Yadda, yadda, yadda.
In every case, you had to buy the Microsoft or the Intel or the EMC when these statements were uttered.
Now I see the same thing going on whenever Microsoft wants to go into something. And as much as I respect the management team at Mister Softee, there's much more bluster than bite these days. When Microsoft says it is charging into something, it's more worried about the Justice Department than it is the competitor. Plus, the brand Microsoft has lost so much luster as so many people have learned to
Microsoft's innovations. It's simply not the company it was.
That's why McAfee was such a great buy. All it had to do was keep doing what it had been doing and the stock would go higher, just like Intel, Microsoft and EMC of old.
Don't be faked out of your shorts when Microsoft thunders what it is up to. It's not 1990 anymore.
It's 2005. And Microsoft feels more like the IBM of 1990 than it does the Microsoft of that era.
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At the time of publication, Cramer was long Intel.
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