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Bill Gates Hates Microsoft Stock! I think I know why....

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February 19, 2009 – Comments (8) | RELATED TICKERS: RSG , MSFT

Gates is dumping his Microsoft with wild abandon. I am not a computer geek, but I think I know why.

Take a Gander here:

http://www.secform4.com/insider-trading/789019.htm

http://www.insidercow.com/

Of note, the richest man in the world does like:

REPUBLIC SERVICES, INC. RSG

http://www.secform4.com/insider-trading/902012.htm

Some Fool might be wise to shadow or investigate Gate's new love of RSG? Si or No?

Now, why does Bill hate Mircosoft?

My guess is:

1. The Best Free Software of 2009

Free! Free! Free! 

2. OpenOffice.org: 7 Things You Didn't Know You Could Do

" OpenOffice.org 3.0 costs absolutely nothing but comes closer than anything else to letting you delete your copy of Microsoft Office (which probably cost you a lot). Even though OpenOffice.org—which is, yes, an application suite, not just a Web site—can't do everything Office can, it can do a lot, and it has some of its own tricks that even Office can't manage. Here are a few that may not be obvious, as well as a few ways to make OpenOffice.org less annoying out of the box."

 

Free! Free! Free!

3. Plus, MSFT CEO Balmer is no optimist:

Ballmer likens economy to depressions of 1837, 1873, and 1929

Feb 06, 2009

Microsoft Chief Executive Steve Ballmer sketched a dire portrait of the world economy on Friday, likening it to market conditions in 1837, 1873, and 1929, each of which involved bank failures, high unemployment, and a depression.

"This is a once-in-a-lifetime economic crisis," Ballmer told a retreat of House Democrats in Williamsburg, Va. "There is a lot of history around that, and frankly if you stop and think about it, 1837, '73, '29, 2008, it's almost exactly a whole lifetime between each of the major economic difficulties that we face."

Ballmer said that economic growth in the last 25 years was fueled by innovation, globalization, and debt--and that the current levels of debt were unsustainable. "In 1929, for example, just before the stock market crash, the private debt-to-GDP ratio was 160 percent," he said. "Last year, private sector debt as a percentage of the GDP: 300 percent, far more leverage."

 

Microsoft CEO Steve Ballmer: "This is a once-in-a-lifetime economic crisis.

"In my view, what we now have will be a fundamental economic reset," he said. "The economy is going to have to re-establish itself at a level of spending that reflects the real value of underlying assets before we can all start growing again at a healthy rate."

"PC sales (are) discretionary in most home budgets, the second, the third PC," Ballmer said, adding that Microsoft nevertheless will continue to spend more than $9 billion a year in R&D. "Consumer electronics has that characteristic. Fifty percent of capital spending in this country is on information technology. Less capital, less spend on information technology. No sector will be immune."

Microsoft shares have fallen by about half since the fall of 2007, a steeper fall than the Dow Jones index but in line with the tech-centric Nasdaq.

http://news.cnet.com/8301-13578_3-10158959-38.html

4. Linux is also Free! Free!

5. I should mention, no one outside of the US pays for MS Office, they just make copies. 

8 Comments – Post Your Own

#1) On February 19, 2009 at 2:48 PM, jwest94 (98.46) wrote:

Open Office has been around a long time as I have used it for many years. I doubt that is even close to the reason.

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#2) On February 19, 2009 at 3:13 PM, abitare (89.66) wrote:

jwest94,

A reason, not the reason.

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#3) On February 19, 2009 at 3:13 PM, Paxtor (28.95) wrote:

If you look back at Gate's insider trading, he sells microsoft quite often.  I'm not saying MSFT won't decline in value, but I wouldnt base it on Gates selling a few million of his 0.8 billion odd shares

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#4) On February 19, 2009 at 3:40 PM, Tastylunch (29.33) wrote:

Or maybe he just isn't a very good investor. He did after all buy a ton of Beazer homes last year for the Gates foundation.

I do think MSFT has problems though. The pay for office problem is a big one.

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#5) On February 19, 2009 at 3:43 PM, Harold71 (22.12) wrote:

I do like openoffice.  For my purposes it certainly works. 

He has sold off quite a chunk, round about 73 million shares...certainly a "few" million. 

I'm surprised he didn't dump more, earlier.

The market is breaking 7500, which is long term support.  I expect a fall until a new long term support can be established...which is a loooong ways from here.

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#6) On February 19, 2009 at 4:49 PM, scorp1us (< 20) wrote:

2009 is the year fo Linux On the Desktop! (tm)

 Hardly.

 While Linux and other Free software has come a long way (Ubuntu/KDE 4.2 goodness! drool...) Until it has corporate backing, it won't replace Windows. It also needs Adobe apps, and all those other apps as well. There may be free alteratives, but there is a learning curve. OSX on the other hand is much better positioned. But between these two, MSFT is up against serious competitors. One is best-of-breed and the other is free.  MSFT unfortunately put itself into a OS/App market which were prime targets for commodization. A great idea in the 80s/90s, but not in the 21st century. 

MSFT will have to go the way of IBM and Sun in order to survive. Apple is fine where it is, because it puts its software on its hardware, and that is not subject to commodity markets (yet. Eventually cloud/net computing will make that a commodity, but nnot for 5-10 years.)

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#7) On February 20, 2009 at 1:39 PM, FleaBagger (28.80) wrote:

I'm no geek, but at my office we started using OpenOffice to save money, and we've had a lot of frustrations with it. Also, insider sells are often hard to explain. Maybe Gates just wants to spend (or give away) some of his money.

Hey, maybe MSFT will tank despite its low costs, high ROE, low P/E, strong cash position and cash flow, low debt, and excellent industry position. I've got a few hundred in LEAP call options that says it won't.

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#8) On February 21, 2009 at 6:38 AM, abitare (89.66) wrote:

FleaBagger,

You are a brave man.

scorp1us,

U r a Computer geek.

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