NASDAQ:MSFT

Microsoft Corp (MSFT)

493.78
-3.97 (0.80%)
as of Sep 18, 2026, 8:00:00 pm Market Open.
1796 watching
0
TOP PICK
Model price $37.48, 56% upside. Hasn’t moved anywhere in 10 years. Employees with stock options are leaving, etc. They have to do something. He looks for something to happen as a catalyst but he doesn’t know what it will be. It is a good opportunity with earnings as predictable as they are.
TOP PICK
Free cash flow yield in double digits. No net debt and 10 times earnings. Feels it is lower risk than US government debt.
DON'T BUY
So large that it is tough to do anything internally that will move the needle. Good franchise and have done some good things but even though earnings have probably doubled in the last decade, earnings have halved.
DON'T BUY
Down 13%-14% in the last year. Chart shows it has really meandered and flat lined. Raised its dividend but to him this usually means there is not of growth left in the company.
PAST TOP PICK
(A Top Pick June 23/10. Up 1.78%.) Trading at 8X forward earnings net of cash. Still likes.
TOP PICK
Earnings last week met expectations. PC sales were slow but they are moving away from exposure to PCs. Are going enterprise and x-box. The market has been way too pessimistic.
BUY
Trading at 8 or 9 times next year’s earnings. Good dividend, which he expects will continue to grow. Management will continue to buy back stock. Over a 2 year time frame you should easily be able to earn a 10% compounded rate of return. Becoming a dominant player in Cloud computing.
WEAK BUY
Has a pretty good valuation. Very cheap and pays a decent dividend but the growth and their ability to capitalize on all their cash flow hasn’t come to fruition over the last several years. Trades at 11X earnings.
TOP PICK
Feels the company is under appreciated. With all the focus on wireless, mobile and the Cloud, market has overlooked the fact that the whole back office of all those areas are going to be running desktops that are going to run on Windows servers. Pays 9.5X next year’s earnings.
PAST TOP PICK
(Top Pick Jan 18/10, Down 14.03%) At some point in time you will see the stock do very, very well. Earnings are constantly going up. Great balance sheet, buying back shares.
BUY
Never sells stocks because they go down but because something has changed. With Microsoft the change is from applications on your desktop to ‘cloud computing’. But Microsoft is a leader in cloud computing. It might take the rest of the world a while to catch on. Meanwhile they have the highest dividend in the tech sector. Dividend is likely to grow. Trades a low price/earnings multiple. Right now the market hates almost every tech stock. This is when you should buy them.
DON'T BUY
It was a great stock in the 90s and now it is Apple. From a technical perspective, MSFT is rather tough. He doesn’t like tech companies paying too high of a dividend. They need to use cash for growth.
BUY
Has made the transition to a grown up stock and started to pay a dividend a while ago.
BUY
Views it as a kind of utility company. Enormous amount of cash. Has the ability to raise the dividend. Trading at a 10X multiple. Expect they will take the high ground in cloud computing.
COMMENT
Has had his eye on this one for some time. He continues to wait for it to spend its cash, break up into different divisions, etc. He has decided to avoid this one for the time being. There are more exciting technology plays.
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