[GregWeld]

Interesting to me that Microsoft has hit a 14 YEAR high today... And this is interesting to Investing 102 only because nothing has changed at the company EXCEPT the CEO.

In fact - I would proffer that they currently have THE WORST operating system release since Vista.

So just an inside bit of info here --- my wife started working there as a Senior Director in 1984 (two years before they went public) -- when the company was quite small....

I used to work out (aerobics) with all of the senior people there... including Steve Ballmer... and I've been saying for YEARS that the man should have NEVER been appointed CEO. He's about as tech savvy as a 3 year old. His mouth far exceeds his talent or abilities -- and WALL STREET hates him. To back this up... go look at a long term chart of MSFT stock. One that shows a MOUNTAINOUS PEAK in December 1999/January 2000. The announcement that Ballmer would become CEO was made in December of 1999. From that point forward the stock began it's slide (forming that long downward slope of the other side of the mountain!).

The reason this is important for Investing 102.... is that we are always looking at OUR holdings for FUNDAMENTAL CHANGES. These changes can be GOOD or they can cost us money and thus - be bad. Something as simple as a change in the top management. Here's why this is a great example of a "fundamental change". The company has made a fortune during Ballmer's reign! Sales are gangbusters. Profits are stellar. The company "appears" to be well managed... These are all things we want in a company -- YET -- "the stock" has been completely disconnected from "the company".

Since Ballmer announced his "retirement"... which sometimes means an exec was finally pushed out the door... the stock has been on a stealth move upward. In full disclosure -- We own 10 shares. The same 10 shares that have been in the safe (we actually have the certificate) since 1994 which was Gwen's 10 year anniversary at the company (she spent 19 years there). As long as Ballmer was there - I wouldn't buy one single share. Frankly - I still wouldn't because I think their products stink - and I know about too much dysfunctional internal issues that bother me... and the dividend isn't worth the investment. However... if you were smart enough to buy on the announcement - you have a 40% gain. Stupid me! Hey - you can't own everything.... and you can't foresee everything... and that's not the reason for my post today.

The takeaway from this post is that as owners of a company (if you own the stock you're an owner of the company -- pretty fancy huh!).... be aware of FUNDAMENTAL CHANGES such as a top management change. That's not to say that a company announces the CFO is retiring (and he's 66 years old! He should be retiring!)... Or your company announces a large store closing... These are fundamental changes that should raise the hairs on the back of your neck if you own the shares.

Generally if WALL STREET likes the announced change -- they vote with their wallets and shares can get a nice pop! But beware Wall Street voting with their feet.... that's a sign to sell WITH the crowd and go find something else.