The Big Winner of the Micro-Hoo-Goo Fall Out? The Evil Empire!...But Which Evil Empire?!

Sitting in an English garden waiting for the sun.
If the sun don't come, you get a tan from
Standing in the English rain.
I am the eggman, they are the eggmen, I am the walrus,
Coo coo kachoo ka coo coo kachoo.  -- The Beatles

The biggest winner of the Micro-hoo-goo fall out? The evil empire itself!

It's almost self-fulfilling analysis, since such a conclusion begs the question of "which evil empire, Microsoft of Google?"

In other words, I'm saying Microsoft is the big winner here. (Google is a big winner regardless of this deal with Yahoo, since they remain the only trustworthy content-source agnostic company...this deal changes nothing significantly for GOOG, so you can go back and read any and all of my years of owning and bullish analysis on GOOG for more on that line of thought.)

See, the single biggest issue that Microsoft has been dealing with for the last decade has been the scrutiny of the US Justice Department and The EU regulators and other bureaucrats who won't let Softee give consumers everything the company wishes it could. The regulators of course, are interested in helping their crony companies who Softee had been destroying for years with smart business strategies, so they pretend that Microsoft's push to include as much technology, software and services for free with their operating system is somehow bad for consumers.

I mean, I've seriously never understood the idea that getting more for free is a bad thing for consumers. If the regulators had their way, you'd have to pay for your browser -- something like "Netscape on sale for $99 per user at Amazon.com right now!"

At any rate, suddenly Microsoft is a "victim". They're the ones who are on the wrong side of a market dominated by an evil empire that uses its position to destroy its competitors. And now, finally, Softee might actually get back to driving technology markets forward with their $7 billion they spend on R&D every year. That's $20 million a day, btw, that this company spends on researching new software and hardware.

I've maintained that Softee's been a good investment down here around $28 and the trading's been pretty good too. I'd stick with Softee for the foreseeable future. I could even see it getting back to $35 a share before the it gets back to $25 a share.

PS. Click here to sign up for he latest edition of our monthly stock market newsletter, The Cody Report, and get exclusive access to this month’s four stock picks.