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Dell, HP, IBM or Microsoft? February 16, 2006

Posted by deminvest in investment, Single stocks, stocks.

If we are talking about technology and we are talking about good healthy companies with large serious business, which will probably not be in trouble tomorrow… Well then we need to look at those big four. IBM is a little bit too complicated for us proletarians to understand. The sold their PC busines to Chineese. So what do they do now? Some chips, but not as good or as many as Intell and AMD. Some business services, but will businesses allway need IBM? To hard for us to answer… More than that IBM has huge debts… So let’s stay clear!

HP had strong growth lately. Yesterday it posted good earnings, but it is exensive and still sells trough shops and salesmen. It is also pretty expensive as a stock, it is a gigantic company which may have an hard time against the same Chineese which bought IBM PC division or other Chineese or Asians like ACER… or Dell which sells only truogh the Internet and doen not have to give out a share to the sellers.

Well Dell seems nice, but it is expensive and… big difference with the other big 4, Dell does not give out a dividend… And when a company does not give its cash to its stockholder, the savy proletarian investor frowns. Not nice… Maybe they don’t have much cash to give out… The democratic investor never forgets Enron style accounting which could overextimate earnings… This is a little bit more complicated when a company has to give out part of those earning in cash… So lets stay away fro Dell too.

Microsoft is different. Tonns of cash in their banks. A busieness that continues to grow, and well their expenses are mainly to build software that belongs to the Company and patents linked to that software. Microft pays a dividend too. So if you like technology and don’t want big risks, choose Microsoft.


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