Microsoft Corp (MSFT)

What is MSFT's RSI? The RSI measures momentum. Like a baseball, a stock will hit maximum speed. MSFT's RSI has gone up and down--not a worry. With this stock, the trend is still bullish, so he's not concerned. MSFT is in an uptrend.

Earning last week were great. They're winning lots of business in web services He's more positive about MSFT now, given what's happening to competitors in this space like Amazon. He's positive about this stock, but holds enough tech stocks so he isn't buying it now.

It is hard to buy ahead of earnings. The trend has been good earnings leading to a weak price. He loves the company since $15 and it continues to do everything well. He would buy more at $90, but would wait for earnings first.

FANG stocks are expensive, like MSFT-Q. It scores well for him on price momentum and has high return on equity. They have a yield now and beat on the last quarter.

It's a value tech stock. Carries a solid balance sheet with strong growth opportunities. This is a better place to hide than, say, Alibaba. During a downturn. MSFT won't go down as much. Has US$33 billion free cash flow.

(A Top Pick August 1/17 - Up 25.7%.). Still like it. A solid dividend. Free cash flow yield over 5%. Cash on the balance sheet. Accelerating growth profile with the switch to cloud business. There is upside here.

Has been hitting on all cylinders for several quarters. He has owned it. As its valuation has expanded, he has reduced the amount he owns. Their platforms are still growing. Their fundamentals are driven by cloud adoption.

Valuation is slightly rich. Its payout ratio is two, whereas Facebook and Google is one. Its upside is a recent beat while their Cloud numbers are strong. They have transitioned well and turned the ship around. This could be a core name in a rising market.

He was wrong on this one. But they have done a fantastic job with their cloud segment (30% of what they do now). It surprised a lot of people. (Analysts’ price target is $103)

Do you like the company? He likes the business – it is not cheap on a multiple of free cash. It has become an annuity type investment. It deserves a higher than peer multiple. It is a good business with good cash flow. Yield 2%.

Positive. A conservative tech company. Cloud business is positive. Good earnings and dividend. Should survive market volatility, not decreasing much. Many people use their cloud and other services which will continue.

PNC Financial or Microsoft? Likes both spaces. PNC: Trading at higher multiples than the big banks like JP Morgan. The stake in Blackrock is positive. Buy on a dip or lower valuation. Microsoft: Likes it, but if you can buy both, buy both.

This peaked out at $54 in 1999. It finally broke out from the high in 2016. In 1999 they earned $.70 a share, and in this past year they earned $3.43 a share. This company is rejuvenated through its Cloud-based business. They reported great earnings tonight. Their Cloud business grew 98% after growing 90% last quarter. Their gross margin widened again, becoming more profitable. Their earnings were up 15%. They are growing their dividend at greater than 15% a year, and that should continue for quite some time. Subscription software sales were up 40% year-over-year. Dividend yield of 1.8%. (Analysts' price target is $98.67.)

An interesting company, because it is an older tech company, but they've got a new life. That new life has come on the back of the Cloud and gaming, and it’s been a very, very big ship to turn. They've done it successfully and deserve a lot of credit. However, the stock price has reflected that optimism, more so than the fundamentals, so the multiples have risen, because there is more optimism in the market.

The long-term outlook is still very strong. The market is expensive and the stock price is expensive, so this is where you want to come in with a disciplined strategy of buying a half position, and let the market dictate when you allocate the next half.