The Perfect Time To Buy Microsoft ($MSFT)?

By: ispeculatornew
Date posted: 09.05.2013 (3:00 am) | Write a Comment  (1 Comment)

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$msftThese days, no one would dare call Microsoft boring. Sure, it has that ancient combination of Windows operating system and Office software which generates the bulk of its business. But in recent years it has added a money losing online division, a leading gaming product in the xBox. Then, in the past month, controversial CEO Steve Ballmer announced he would be stepping down within a year and the company announced it would acquire cell phone giant Nokia. Too much too soon? Investors seem clueless what they should do:

MSFT Chart

steve-ballmerI do own Microsoft (MSFT) in the USDP and I think this might be a good time to get in on Microsoft. Why? A lot of upside and limited downside. That’s the winning combination I always work to find. Here are a few key metrics that I’ve been looking at:

msft1

 

Solid numbers here right? Let’s look at fundamentals:

 

msft2

 

Again, there’s not much to be concerned about. The 10.36 P/E is attractive for a company that is growing and has so little risk and volatility in its revenues and earnings.

Much Of It Rests On The Next CEO

I’m not going to lie. Microsoft’s future is very much tied to who the board will end up choosing. Many are concerned that it’s impossible to expect a great pick given this board was the same one that picked Ballmer. But just look at Yahoo which also had a bad board and how well the stock has done since hiring Marissa Mayer. I don’t think anyone would argue that Microsoft’s potential is even greater.

YHOO Chart

YHOO data by YCharts

What do you think? Would you buy Microsoft?

Disclosure: Long Microsoft (MSFT)

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1 Comment

  1. […] Intelligent Speculator reviews Microsoft (MSFT) after recent buy in […]

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