Microsoft Corp (MSFT)

They have 150 million users so he sees this as a safe place to be. They are building on the cloud technology.

He was long on it for quite a while. It has been a great trade, but it has caught up to the NASDAQ strength and it has got too expensive for him even if not so relative to other tech stocks. It has great return on equity. It has a decent quarter and the balance sheet is pristine. A better yield would be helpful but it is too expensive right now for him.

In the software space this company with 150 million users is a safe place to be at this stage of the market cycle. This provides on-going revenue and they are a leader in Cloud developments. Yield 1.5%. (Analysts’ price target is $122.30)

(Past Top Pick, November 16, 2017, Up 30%) It slowly grew as it increased its earnings. The market once considered this yesterday's tech company. This will likely outgrow Amazon Web Services. It's starting to get expensive, but this half-trillion company is actually accelerating growth.

This stock was dead money for years but has taken off. As a cloud business, they have become a growth company again, with double-digit revenue growth and consistently strong margins. This is the most expensive stock in his portfolio from a price to earnings basis but he believes that industry is still in early stages of jumping onto the cloud and that there is very strong growth ahead for Microsoft. He expects double-digit earnings growth for years to come and with $50 billion of net cash, he sees this as the best company that he owns. Yield 1.5%

The investment thesis on Microsoft is very good. They converted from software to cloud computing and have done a fabulous job of this. In future, they can grow dividends and stock buybacks. Balance sheet is fabulous. Not a lot of reasons why you would not buy it.

They are modeling they can grow 15% 2018-2020 compounded annually. Trades at 20 times. A little expensive but the growth is there. He thinks it has legs long term.

They recently reported very strong earnings and have good success in the cloud technology. He likes the dividend growth. The stock is getting more expensive, so it is a good hold here.

Until 2016 there was a flat consolidation, then the new CEO took the company higher. They're executing superbly and reported strong earnings. Their year-end is June 30, and it can be soft in July-September. But he sees nothing wrong with their chart.

Owned it for a long time. Technology moved from enterprise to consumer and now going back to enterprise. The cloud is still very small compared to other aspects. Still lots of companies can move and this company is well positioned for that. Generating lots of cash. Good profitability. They are in a sweet spot and continue to do well. They have a lead on the cloud.

An impressive run, but we're seeing now impressive revenue growth from their Cloud and legacy businesses. Their margins are a little compressed from spending on new initiatives. -26x earnings, but they are walking the walk. A good
company.

He still likes it although it is not a bargain any more. The free cash flow conversion is quite high in this company. They have done a good job of high grading the quality of revenues of the last couple of years. You are paying a fair price for it and if you are in it for a long time you will be okay in the stock.

They seem to be riding gaming, the Cloud, other software--all the right waves. If you want to run an office, you have to pay them to use their software or Cloud. An amazing company. The problem is the valuation has gotten ahead of itself
at 27x earnings. It's a new company. Kudos to the CEO. Ultimately, if you believe the Cloud is in its infancy, buy it--but at a 10% pullback.

He bought it when it had been trading sideways for a long time. Then the sky was the limit and he remains bullish on this one.

It has a solid franchise. They recently extended their runway by buying GitHub for over US$7-billion, which meshes nicely with their Cloud operations. Essentially, it extends business-to-business communication. This was a smart move.