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NASDAQ:MSFT

Microsoft Corp (MSFT)

369.87
-9.53 (2.51%)
as of Jun 22, 2026, 5:54:48 pm Market Open.
854 watching
0
COMMENT
Have tripled their earnings over 10 years but their multiple has been cut by two thirds. Net result is that the stock is basically in the same place that it was 10 years ago. Windows 8 is the thing that is getting him intrigued.
COMMENT
Good company and probably a good valuation here. Windows 8 has proven to be a good advancement for them. Also making headway in the cell phone area. Not the growth profile of some of his favourite tech companies.
BUY
Owns very little. Stock has come to the point where you could add to your holdings. Risk on the downside is that you are going to beat the T-bills. (?) They have a bunch of new products coming forward. Put a Stop under your holdings. Looks okay.
TOP PICK
(Top Pick Jul 4/11, Up 19.11%) Incredibly cheap but has been so forever. What is interesting about it is that Windows 8 is coming out and there has not been a huge cycle upgrade for computers in the last 3 or 4 years. Thinks the surface tablet will do more than investors think. The iPad is an entertainment device. The Surface has a keyboard. It is productive. It is a notebook that is down to a notebook size. They have so much cash and the possibility of increasing dividends, although it is not a dividend play. Expects 15-22% increase including dividends.
PAST TOP PICK
(A Top Pick Dec 21/11. Up 100%.) Sold a $25 April Put, which expired in April. Picked up $1.25.
PAST TOP PICK
(A Top Pick June 23/11. Up 24.79%.) Coming out with a great product line, which is helping them. Windows 8 will be a good product. Not expensive.
PAST TOP PICK
(Top Pick Jun 9/11, Up 25.82%)
COMMENT
Lately there is a lot of hope for Windows 8. Xbox is doing well for them. Getting back into the smart phone business with Windows software is very early days. He is warm towards the stock here.
TOP PICK
(A Top Pick June 9/11. Up 27.43%.) Model price is $41, an upside of 37%. Has a 2.7% dividend.
PAST TOP PICK
(A Top Pick June 23/11. Up 31.15%.) People were undervaluing the company and its core businesses. Some of their core businesses are coming up with new products that will really drive their earnings quite substantially, especially Windows 8. Has a great yield and great balance sheet with reasonable to good growth. Can see this closer to $40
DON'T BUY
This company is fine, but if you are looking for growth wait to see the Top Picks. Has about 1.5% yield. Trading at a very reasonable multiple at 10-11 times earnings. There just isn't the growth that you would see in some other tech stocks.
DON'T BUY
There are a lot of good technology companies. Have actually done a fairly good job in terms of new products. Coming out with Windows8 later this year. Have done a good job on the gaming side. Has become a very large company and the needle doesn't move so easily.
TOP PICK
Cheap. Likes the story. Great balance sheet. 11x earnings, 2.6% yield. April 19 numbers come out. You will get better PC demand, which will help them. Windows 8 coming out late summer or call but is a 2013 story. A lot of good products coming out and every one is concentrating on Apple. Made an effective job of changing their business.
TOP PICK
The ugly duckling. Apple gets all the news and MSFT doesn’t. It is a good story right now. There will be great momentum because of new products. Not an expensive stock. Great balance sheet. Windows and the office suite are a very good franchise.
DON'T BUY
In the last decade they doubled their earnings, but their multiple has halved. They are at 9 or 10 times earnings. Market is looking at windows 8 and saying they should give the company another chance. He things they should be viewed as a utility. There are so many good choices in technology.
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