Microsofts best days are ahead of it. As the world moves to mobile computing not only will MSFT own the desktop but also the tablet and the smart phone what with their powerful new Windows 8 OS and Windows 8 Phone OSes
It won't be sub $30 much longer:
- at 10x 2013 earnings it's $28.60, and 10x is historically low for MSFT and well below the market average
- they have around $7.75 in cash here and abroad
- pays a 3% dividend while you wait
- relationship with Facebook and Yahoo
- Skype, Bing, and a host of other strategic holdings & investments
With a PE multiplier of even 11 or 12, factor in some cash-on-hand, the dividend players, and some news from their many relationships...should be mid $30s easily this year. Not a grand slam, but an easy 20-25% play with a sleep-at-night stock.
now, this is what i call someone with alot of intelegence!
On top of all these, msftis hevily investing into harwares and these efforts shall solidify MSFt's gradual total control and value relaization of the Winodws eco systems. The unified inetrface for desktops, to laptops, then to tablest and to smartphones as well as x-box machines, all these will be hugely positive to msft. No other company is able to pull all these all togather. Office and Windows togahter will create great long term value for shareholders!
Sentiment: Strong Buy
MSFT is affected by the economy just like any other company but not as much as people think. A lot of MSFT revenue is reoccurring licensing subscriptions that have to be payed regardless. New license purchases will slow if economy is slow. MSFT is a cash cow but that cash wad isn't growing very fast in this economy.