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Stocks

Star Hedge Fund Manager Einhorn to Microsoft CEO Ballmer: Time to Go

By , Associate Editor, Money Morning • @DavidGZeiler - • Print | Email

Citing the stagnant stock performance of Microsoft Corp. (Nasdaq: MSFT) over the past decade, hedge fund manager David Einhorn publicly called for CEO Steven A. Ballmer to step down and "give someone else a chance."

Einhorn made his comments at the annual Ira Sohn Investment Research Conference in New York yesterday (Wednesday). His Greenlight Capital hedge fund owns about 9 million shares of Microsoft stock.

While the tech-heavy Nasdaq Composite Index has gained 34% over the past 10 years, Microsoft has slumped 25%.

Ballmer was named CEO in January 2000.

"His continued presence is the biggest overhang on Microsoft's stock," said Einhorn, who gained notoriety after betting against Lehman Brothers Holdings Inc. (PINK: LEHMQ) four months before its collapse in 2008.

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After a Decade of Miscues, Can Microsoft Corp. (Nasdaq: MSFT) Hook Up With the Mobile Revolution?

By , Associate Editor, Money Morning • @DavidGZeiler - • Print | Email

There are monopolies.

And then there's Microsoft Corp. (Nasdaq: MSFT).

With its Windows operating system installed on virtually all of the world's PCs – the market share peaked at about 95% – Microsoft became synonymous with the personal computer revolution.
Kent Moors File

And it didn't stop there. After locking up the operating-system market, Microsoft did nearly the same thing in the applications market with its Office suite of productivity software.

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Once the Planet's Most Valuable Company, Cisco Systems Inc. (Nasdaq: CSCO) Now Seeks to Rebound From a Decade of Stagnation

By , Associate Editor, Money Morning • @DavidGZeiler - • Print | Email

At the height of the 1990s Internet boom, Cisco Systems Inc. (Nasdaq: CSCO) wasn't merely the ultimate tech titan.

It was the most valuable company on earth.

Cisco – the maker of the switchers and routers that form the backbone of the Internet – saw its shares zoom 66,000% during that decade, thanks to booming PC sales, the exploding popularity of the Internet, and the widespread realization of the value of networking.

That mesmerizing surge gave the San Jose-based company a peak market value of $555.4 billion, a total that's never been approached again – by Cisco or any other firm.

In 2000, however, the Internet bubble burst – derailing the Cisco Express. Now one of the world's biggest tech firms, the growth rates of 40% to 50% that had propelled Cisco throughout the 1990s became impossible to sustain – and even fell to the single digits by the end of the 2000s.

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“Where Money Goes to Die:” After a Decade in Decline, Can Microsoft, Intel And Cisco Pull off a Rebound?

By , Associate Editor, Money Morning • @DavidGZeiler - • Print | Email

For most of the 1990s, U.S. high-tech heavyweights Microsoft Corp. (Nasdaq: MSFT), Intel Corp. (Nasdaq: INTC) and Cisco Systems Inc. (Nasdaq: CSCO) didn't just dominate their respective markets.

They ruled them.

Microsoft's Windows operating system ran more than 95% of the world's PCs, and its word-processing and spreadsheet programs accounted for an estimated 95% of the market for office-applications software. The company was a constant target of state, federal and overseas governments, which tried in vain to break – or at least slow – the monopolistic juggernaut.

From Leaders to Laggards
Intel, the other half of the so-called "Wintel" duopoly, had its chips in more than 90% of the world's PCs. Its identity was so strong that – by stamping "Intel Inside" on the beige PC cases – the company was able to "brand" what might otherwise have been a commodity product.

And Cisco was acknowledged as the backbone of the Internet, a key reason that – back in March 2000, with a market cap of $555.4 billion – it became the most valuable company on earth.

Throughout the 1990s, the shares of all three companies performed as the "must-own" stocks that they were: Microsoft's shares rose more than 9,000%, Intel's 10,000% and Cisco's 66,000% during that 10-year stretch.

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Investment Strategies: How to Build a "Stockless" Portfolio

By , Chief Investment Strategist, Money Map Report - • Print | Email

I've lectured on investment strategies the world over, but I recently got one of the most intriguing questions I've been asked in a long time at the Global Currency Expo in San Diego, California.

An attendee asked me: "Is it possible to achieve decent performance if I don't want to include stocks?"

In short, the answer is "yes" — though I wouldn't recommend a "stockless" portfolio because of the tradeoffs involved.

Still, it is possible to achieve a "decent" performance without stocks.

Here's how you'd do it.

To find out how to create a workable stockless portfolio, read on...

Deere & Co. (NYSE: DE) Reaps Benefit From Rising Commodity Prices

By , Associate Editor, Money Morning • @DavidGZeiler - • Print | Email

Surging demand for farm equipment, fueled by rising commodity prices, lifted by 65% second-quarter profits at Deere & Company (NYSE: DE).

The world's largest maker of agricultural equipment said yesterday (Wednesday) that its net income for the quarter ended April 30 rose to $904.3 million on revenue of $8.9 billion. That compares to a profit of $547.5 million on revenue of $7.1 billion in the same quarter last year.

The steep rise of the price of such commodities as corn and wheat in the past year has enriched farmers around the world, allowing them to buy more farm equipment. Deere's farm machinery sales rose 24%.

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Russian Small-Cap Investing: Three Reasons to "Think Small"

By , Money Morning - • Print | Email

It is the world's largest landmass by a vast margin with 6.6 million square miles. At the other end of the spectrum is Vatican City at only 0.17 square miles.

With Russia you think of giant companies like Gazprom OAO or Lukoil (PINK: LUKOY), controlled by oligarchs in Moscow. The country provides a shining example of the challenge facing investors trying to tap into its potential opportunities.

It has provided limited investment choices, until now…

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Hot Stocks: Netflix Inc. (Nasdaq: NFLX) Is More Than Just Special Effects

By , Money Morning - • Print | Email

Netflix Inc. (Nasdaq: NFLX) shares have surged 764% in just two-and-a-half years.

And yet there are still investors, analysts and businessmen who continue to doubt the company – choosing instead to believe that its meteoric rise is more flash than bang.

If you're part of that mix, you may want to reconsider your stance: Not only has Netflix revolutionized the way people rent movies – driving Blockbuster Inc. (PINK: BLOAQ) into bankruptcy in the process – it's now even revolutionizing the way people watch TV.

Having added 3.3 million subscribers in this year's first quarter, Netflix has some 23.6 million subscribers in North America alone. That's more than Comcast Corp. (Nasdaq: CMCSA, CMCSK), whose cable-subscriber ranks shrank by 39,000 to 22.76 million during the same three-month stretch.

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Buy, Sell or Hold: Silver Wheaton (NYSE: SLW) Is Just Getting Started

By , Money Morning - • Print | Email

I first recommended readers of this column buy Silver Wheaton Corp. (NYSE: SLW) on Oct. 10, 2010.

Since that recommendation, the company's stock has surged nearly 28% — but that's just the beginning.

You see, Silver Wheaton just announced another blowout quarter, and despite the recent pullback in the silver market, this company is destined for greater things.

In fact, at current prices, the stock remains a screaming "Buy" (**).

Here's why.

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Safe Haven Investments: Only One Remains

By , Money Morning - • Print | Email

The April 18 announcement by Standard and Poor's that it downgraded its outlook for U.S. debt to "negative" from "stable" was unsurprising.

At the same time, though, it raised questions about safe haven investments.

Principally, if U.S. Treasuries are no longer an investment safe haven, then where can cautious investors safely store their capital?

The market's initial reaction to the S&P announcement was typical of its trader-dominated nature. Stocks dropped and gold rose – but U.S. Treasury bond prices actually rose, as well.

To find out more about the safest investment on earth, read on...