Microsoft Corp (MSFT)

(A Top Pick April 2/14. Up 5.5%.) This was a foray into technology and he still has a small position in this space, but has broadened his way out into a lot of security oriented software.

They still get almost half of their revenues from Windows and Office, and that is a business that he thinks will continue to be challenged longer-term. Doesn’t think this is a company that you need to own at these price levels. Cloud computing is a very competitive space. (See Top Picks.)

Oracle (ORCL-N) or Microsoft (MSFT-N)? Hasn’t owned this for years. Looking at their fundamentals, you will see that they are a very large company generating a good amount of cash, but are having trouble really gaining traction. Some areas of their business are doing well but not large enough to have any major impact on the business. The earnings really haven’t gone anywhere.

There is not a lot of growth in this company. They have a lot of cash, but she isn’t really interested in this name. If you are going to buy technology, buy something that has some growth. There is no visibility on how they are going to grow.

Earnings came out and the stock came down. Windows 10 is coming out. 3% dividend yield and 15 times earnings after you take out the cash. The Surface continues to be a big hit for them. MSFT-Q is the thing you want to own in a difficult environment. They have no debt.

Chart has a series of higher highs and higher lows and is tracking very well above the 200 day moving averages. Dividend of 2.6% is safe, and he sees it growing by 10% per year over the next several years. The new Windows coming out could be a catalyst for the stock. Valuations are getting a bit high because of the PE levels.

Very high free cash flow. The change in management has been welcomed by the street. They were favourable in capital growth and return. They will compete well in the cloud.

Have great products. They are undervalued. Great dividend yield. Great margins. Lots of cash. Management has done good things. Thinks they will be more innovative down the road.

(Top Pick Nov 7/13, Up 31.80%) They are not thinking they are competing with AAPL-O anymore. The Surface has come out and it is an enterprise product. Xbox is doing better and they have a good phone. Incredible balance sheet and the change of management has helped them to refocus. 15 times earnings, 3% dividend, $27 billion in free cash flow, gross margins of 68%. That’s what Microsoft is. A great company from a balance sheet perspective.

Has been doing fairly well over the past while. His view is really favourable towards mobile and mobile computing, and he does question what their offerings might be. Unless there are some real projects that come online, they might be behind the curve on the mobile side, and that is really the future of growth on the technology front.

They have done a great job of restructuring their business. They had tremendous growth out of the cloud as they are one of the biggest providers of cloud services. There is an upgrade cycle that is happening and will continue to happen. 90% of all companies use Microsoft. Business runs on the Windows platform and will do so for the next 10-20 years. They cut costs and it dropped to the bottom line. It is trading at 15 times earnings so it is not as cheap as it used to be. There should be earnings expansion to keep this company going.

(A Top Pick Nov 7/13. Up 26.3%.) The numbers were absolutely fantastic in this last quarter. Thinks it will continue to do well. Feels the ultimate high on the stock will be $54-$57.

Thinks management is doing a very good job in changing the strategy and focus. Had a really good run this year. Not super expensive. His favourite in global technology is Apple (AAPL-Q). It has better growth going forward and has a cheaper valuation. (See Top Picks.)

(Top Pick Oct 3/13, Up 43.01%) Still likes it. Thinks it will make a new all time high.

This is almost the law of big numbers. They get so big that they can’t deploy capital properly. There is a replacement of management, which is a good thing. When you’re sitting with buckets of cash, you have to get that cash moving and deployed and you have to do it properly.