Linked by Thom Holwerda on Thu 11th Oct 2007 21:38 UTC, submitted by Rahul
Red Hat Red Hat is taking a business-as-usual stance in the face of renewed rumblings from Microsoft's Steve Ballmer over the need for Red Hat Linux users to pay up. Ballmer has repeatedly claimed that Microsoft IP is found in Linux. "People who use Red Hat, at least with respect to our intellectual property, in a sense have an obligation to eventually compensate us," said Ballmer at a Microsoft event last week in London. But Red Hat itself has adopted a stance that keeps it above the Microsoft patent fray. "At this point, please reference our previous statements on this topic," said a Red Hat spokesman contacted Tuesday about Microsoft's statements on Red Hat Linux users. The spokesman pointed out a Red Hat blog posted "after the last FUD statements from Microsoft" in May, she said. Shuttleworth agrees.
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RE: stock price on services company
by spotter on Fri 12th Oct 2007 16:28 UTC in reply to "stock price on services company"
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RedHat is *under*valued? What are you talking about? A company with only $463m in annual revenue and on $69m in annual net income with a $4.1b market cap is undervalued?

Come on, their trailing P/E rating is 64 and even their forward P/E is 24. Compare that across the industry to companies like Sun, IBM, HP, Microsoft, which have training and forward P/E in the 14-18 ranges. If anything Redhat is overvalued. Along with Novell, Google, and Yahoo, Redhat make up the new dot-com bust with too high valuations on little revenue and profit streams.

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