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Saturna Capital senior tech analyst Paul Meeks on Steve Sinofsky's departure from Microsoft and whether to invest in Apple and Microsoft.
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-- 23 year career with Microsoft windows unit -- -- -- -- abruptly quits.
Only two weeks after the windows eight lines joining me today is Paul Meeks to turn a capital senior -- analyst with more on -- -- sudden departure.
Did -- practice.
Sure whenever you see a departure of that seniority that magnitude and particularly after.
The launch of some important products in which he was in charge -- yeah I think that's fairly significant news.
And there -- -- whole suite of projects that he had air products that he headlines does it make you worry for the future of those products or even what's in the pipeline.
Not necessarily because remember speculating and this is what that bears are gonna say today.
The products are failing in their early ramps and that's why this guy was let go first of all that's all speculation.
I don't know you don't know no one else.
But I would tell you that pertaining to the product ramps it is way too early to make a determination if there.
Not gonna make it remember we're only days or weeks into this.
Yeah and it.
You know -- from all the -- and and you never know with these sort of stories you know is that the company spinning it sort of trashing him on his way out so all the reports say.
And it you know he was difficult to get along with that he was a tough personality I mean do you buy that or do you think that's Microsoft spin this is sort of you know make it look like -- made the right.
If it's a situation where the CEO Steve Ballmer is trying to eliminate future rival to -- particularly if this person is -- well regarded and does a good job.
However if he is tough to get along with -- he is holding back the company.
The decision has been -- remember apple again as speculation as to -- cause of those departures to the same thing about a week ago.
Yeah I mean to -- end so that's kind of an interesting parallel I'm glad you brought that up because we have.
You know basically two of the biggest players at these two enormous tech companies meeting at roughly the same time what are the parallels.
Well I think the common thread.
Is that both folks were -- rumored to be difficult to get along with and so until we hear differently.
Because I don't know if you can make the call that the new.
IPhone 5.
-- the new versions of -- -- apple.
-- the new products that Microsoft.
You can make a determination patient if they're going well or not it's just too early in both France.
Its bottom line of Microsoft's.
Do you think that this company is a -- right here when -- adding we're looking at a chart right now.
Relative weakness -- we do think that it's.
It's a buyer or is this a company that sort of dead money.
You know the proper trading pattern and this is not -- do it are firm but if you're a trader the proper pattern over a long period of time now was -- in the high teens very low twenties so that thirty.
Now today the stock is down we're still trading at 2627.
So I think it's probably just -- hold.
Now apple you've been a long time apple ball what do you think -- -- right here.
Well I think Apple's -- -- by the way a look at this is it is too early to speculate.
On the success of -- new product -- in the meantime I love the fact that the company is being innovative.
And the company is as innovative as ever in the last couple weeks or months and when I take a look at the valuations this company it trades at a discount.
To the S&P 500 so you are telling me that this is being valued as a below average US company when we all know it's a superior company.
But we're looking at the chart we've seen -- as you know you know a steep decline here since the end of September a lot of it has to do.
With the idea that we just don't know long term what is in the pipeline if apple can continue to have the same magic.
That it did under Steve Jobs you feel confident that right here it's not a by I think it is a -- it's not the beginning of the end.
I don't know if you wanna catch a falling knife if you're short term trader but if you're long term oriented like us I think it's a -- great buying opportunity.
If you put a fifteen multiple on this company which I think is very conservative.
-- add their 128 dollars per share in cash you have a stock that goes up 506070%.
From him.
All right Paul -- thanks so much for joining us we appreciate it.
Thank you.
Forget the treadmill.
