According to WSJ:
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The discounted earnings suggests that the company is currently trading at a solid discount.
Fair stock price valuation indicates that currently undervalued MSFT stock has at least 25% upside potential to reach its fair value.
IMO Microsoft is poised to gain from its upcoming product launch, making this a prime time for investors to buy, and profit from, the technology giant's stock.
Many investors have been hesitant to invest in Microsoft just because they have always viewed the company as overvalued. However, I believe that Microsoft is now undervalued.
It seems that Microsoft is selling at a significant discount when compared to its intrinsic value of $43.97.
With ten years of healthy growth and profitable numbers and a promising future.
Clearly Google and Apple currently dominate the smart phone and tablet market. With Microsoft in a full-out new product launch cycle, it will be interesting to see how this war plays out.
According to IDC's Worldwide Quarterly Mobile Phone Tracker, total Android Smartphone shipments worldwide reached 136.0 million units, accounting for 75.0% of the 181.1 million Smartphones shipped in 3Q12.
Let me spoil the suspense for you. MS will not be a player. No one thinks about or wants their buggy bloated blue-screened crap when shopping for mobile. The ship has sailed, and the criminal monopolist of Redmond missed it. There ya go.
A recent report from Strategy Analytics in the third quarter stated the number of smartphones in use in the third quarter of 2012 totaled 1.03 billion, a 47 percent increase from third quarter 2011. Lessons can be learned from the Cola Wars in the 1980s and 1990s, and if history does indeed repeat itself then there is room for more competition which will help the consumer by offering more choices. For Microsoft this launch is very exciting but also risky, but if successful will put them on the right course, especially when Apple and Samsung fight over patent issues.
With Microsoft's dividend of 3%, I believe MSFT to be undervalued at $29.52 and fairly valued at $33.00 and would not be surprised if it reaches $37.00.
Microsoft shares could be perfect for income investors.
Here are some key points for MSFT:
Current share price: $26.60
The 52 week range is $24.30 to $32.95
Earnings estimates for 2012: $2.90 per share
Earnings estimates for 2013: $3.24 per share
Annual dividend: 92 cents per share which yields 3.5%
Good news for MSFFT:
An appeals court has ruled that Motorola (GOOG) can't enforce a patent injunction stopping Microsoft from selling its Xbox 360 and certain Windows software in Germany. As Microsoft had sued Motorola for breach of contract in the U.S. prior to the latter's suit in Germany, U.S. courts have the authority to stay the German injunction