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Compiling comments that experts make about stocks while on public TV.

2017-09-13

Opinion for Microsoft (MSFT-Q)

Signal Price Bias Subject Owned
COMMENT $75.210 UNKNOWN REITs, BONDS AND DIVIDEND STOCKS Yes

Had a great run. When he bought it, it was on a free cash flow yield basis of about 12%. Now it sits with a 5%-6% free cash flow yield. Their Cloud-based business has exploded upwards. Office Suite 65 has done incredibly well. The only issue is valuation. It used to trade at 10X earnings, but now trades at 25X. If you take out the cash, it is more like 15X. Thinks there is more upside, but he is cautious. He is going to look at this in the next couple of weeks as to what he is going to do with reallocating.

Paul Gardner, CFA
Partner and Portfolio Manager, Avenue Investment Management http://www.avenueinvestment.com/

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