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Red Hat Now Trading at Nearly Same Share Value as M$FT

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For all you stock-watchers...

I just did a double-take on the stocks that I watch...:o

Over the past year, Microsoft earnings have been flat, while at the same time, shares in Red Hat have zoomed 300%!!!

Red Hat closed today at $25.00 per share (down $0.06)

Microsoft closed today at $25.45 (down 0.16)

David (Red Hat) is now trading at almost the same value per share as Goliath (Microsoft)!

Performance Graph here

mh

.
"The mouse does not know life until it is in the mouth of the cat."

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While the stock prices are similar, that comparison is pretty meaningless.

MSFT 25.57 11:37AM ET 276.01B
RHAT 25.14 11:37AM ET 4.41B

See that last number? That is the value of the company. So, Microsoft is valued at 62 times what Redhat's value. I'm not saying Microsoft is growing as fast, or has great products, just that there is no direct correlation between stock price and total market value. Microsoft has 52 billion in cash. If it wasn't for anti-trust regulation, they could just buy all the Linux companies combined.

Referring to Mark's initial message, not you, Phree.

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Quote

While the stock prices are similar, that comparison is pretty meaningless.

MSFT 25.57 11:37AM ET 276.01B
RHAT 25.14 11:37AM ET 4.41B

See that last number? That is the value of the company. So, Microsoft is valued at 62 times what Redhat's value. I'm not saying Microsoft is growing as fast, or has great products, just that there is no direct correlation between stock price and total market value. Microsoft has 52 billion in cash. If it wasn't for anti-trust regulation, they could just buy all the Linux companies combined.



EXACTLY Justin. While Red hat has put out some very strong numbers this year, it's not even close to a fair comparison. You have to look at Market Cap as well. Now, could this be a good indication of the future of Red Hat... who knows. How many people are kicking themselves now who bought in to MSFT in 86' when it was trading at less than a 1.00 and took their profits before the 1st slpit, or the 2nd, or the 3rd, or... you get the point.

Good Call tho, hope you got in early, I could live with some 300% gains.

Blues!
Merrick

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