Gerry Sullivan

GE, Microsoft on New Low List

I own both GE and MSFT and want to believe that they are values at current prices.

I can make a bear case for both. GE is 40% financial and what do they hold? If it is similar to what the banks and brokers have, there could be significant write offs in the future. What's the rest? Washing machines and locomotives and some medical technology, NBC.

MSFT might be like Kodak (EK) In the 1990s MSFT was the dominant computer and internet player. The Windows operating system, the Office suite, Internet Explorer all on top. Along comes
a couple of 20 somethings with a better search engine and MSFT is looking like a has been.

Everything else they have done has been mediocre at best. Does anyone think Hotmail is better than Gmail? It isn't even better than Yahoo. How about the MSFT search product? 3rd place.

How about games? How about Zune? Starting to sound like Kodak which dominated photography for 100 years, but was never able to adjust.

Recently, MSFT was #3 in market cap in the US stock market. EK held that same position at the end of 1972.

Wonder which companies were ranked 1 and 2? IBM and GM.

Time moves on.