Microsoft (MSFT) / Bill Gates

[winston]

ANOTHER DEVELOPMENT IN "BIG TECH BOTTOMS"

Our "big tech" story continues today… This time, it's Microsoft that's ready to leave its bottom behind.

On Tuesday, we highlighted how Google's skyrocketing share price is displaying the power of our September "big tech is cheap and bottoming" idea.

Before its price surge, Google was in a small group of dominant tech firms with lots of cash, big profit margins, and low valuations… yet out of favor with growth-focused investors. The stock's recent 33% rally cured that "out of favor" condition.

Another one of our big tech cheapies, Microsoft, is still out of favor. Microsoft is such a dominant, entrenched software company, it's like a toll road on computer and Internet usage… Yet it's so cheap relative to cash flow, master stock analyst Dan Ferris calls it the "safest stock in the world."

And from our common-sense charting approach, Microsoft is also one of the most "bottoming stocks in the world." As you can see from today's chart, Microsoft suffered a big fall this summer… but has carved out a tradable bottom around $24 per share. It's now knocking on $25.50. Next stop is a breakout above its August high of $26.


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[iam802]

eh.. buy MSFT, might as well look at RHT. (<< but, I am biased against MSFT)

So, let's see what the chart tells us. RHT outperforms MSFT for the past one year.

MSFT_vs_RHT.png

[iam802]

Doesn't seems like MSFT is getting their act together.

To my knowledge, Ray Ozzie was supposed to replace Bill Gates when MSFT acquires Groove Solutions.

Now, that he is leaving and Ballmer is saying the 'Chief Software Architect' position will be discontinued.

Maybe Ballmer does not like to be challenged.

--
Microsoft’s Chief software architect Ray Ozzie heads to the exit door as Microsoft ceases the CSA position forever.

http://www.technology-digital.com/secto ... -made-exit

[winston]

Not vested

THE BIG TECH STORY IS GETTING BETTER AND BETTER

Another big tech cheapie is "leaving the station"… This time, it's Microsoft.

In early September, we highlighted how dominant tech companies like Intel, Microsoft, and Google were cheap and out of favor with growth-focused investors. But these companies are almost monopolies on computer and Internet usage… with big profit margins, ironclad balance sheets, and huge cash hoards.

Google resolved its "out of favor" situation by skyrocketing 33% just after our note. And last week, we showed how Microsoft is busy carving out a tradable bottom… and working its way to a breakout above its August high around $26 per share.

As you can see from today's chart, Microsoft is leaving its station in the mid-$20s per share range… In just the past few trading sessions, the tech dominator shot out to its highest high in three months. The stock is cheap and now has a new uptrend in its favor.


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[iam802]

hahah.. did he also mention that MSFT burns US$2B in one year for their Online Business division

[profittaker]

nearly 2B dollars.

Ballmer Statement on Stock Sales
http://www.microsoft.com/presspass/pres ... ement.mspx

REDMOND, Wash., Nov. 5, 2010 - Microsoft Chief Executive Officer Steve Ballmer confirmed Friday that he is selling some of his holdings of Microsoft stock to gain financial diversification and to assist in tax planning before the end of the calendar year. He plans to sell up to 75 million shares by year-end. Before taking into account recent sales, according to the latest Microsoft proxy report, Ballmer held approximately 408 million shares.

"Even though this is a personal financial matter, I want to be clear about this to avoid any confusion," Ballmer said. "I am excited about our new products and the potential for our technology to change people's lives, and I remain fully committed to Microsoft and its success."

[kennynah]

Maybe he wants to buy an island at Barbados.. Girlfriend needs a private jet/yacht, etc??

[profittaker]

Maybe he wants to buy an island at Barbados.. Girlfriend needs a private jet/yacht, etc??

he is obviously going to leave MSFT, probably planning to party all day after leaving MSFT. Some speculative he will leave MSFT within a year.

anyone tried windows phone 7 and find it good? I feel it is different league than Apple or android.

[profittaker]

The Microsoft Kinect: A Hands Down Winner?
By Peter Ha Sunday, Nov. 14, 2010

Some tech critics argued that Microsoft had no business jumping into the gaming arena in 2001 against power players Sony and Nintendo—and for years Xbox lost money on every console it sold. Yet the division has not only become profitable but over the past four months took the lead in console sales in the U.S., according to market-research group NPD. The new Kinect add-on, which hits stores Nov. 4, is competitively priced too, sold separately for $149.99 or bundled with a new Xbox starting at $299.99. A PlayStation3 that comes loaded with Sony's new and improved Move handset is $399.99. The Wii costs $199.99.

Over the years, Microsoft has added Xbox services like Netflix for movie streaming and Last.fm for music fans so that what was once just a game console has slowly become a one-stop shop for home entertainment. Xbox Live, an online multiplayer gaming service that costs $50 a year, now draws more than 25 million active users and will likely keep growing with the coming launch of Microsoft's mobile operating system, Windows Phone 7, which will allow gamers to compete with friends on their phones. Meanwhile, Kinect will usher in a new wave of services, including video chat and live streams of sporting events from ESPN.

"With all this convergence comes the potential of increased complexity," says Marc Whitten, corporate vice president of Microsoft Interactive Entertainment. Kinect goes a long way toward making that complexity easy to enjoy. And although hard-core gamers might scoff at Kinect's family-friendly offerings—no shoot-to-kill stuff is included in the initial lineup—a Star Wars game is in the works. My fellow Jedis will be ready




Read more: http://www.time.com/time/magazine/artic ... z15LBDbuux

[winston]

ONE OF THE GREATEST STOCK STRATEGIES EVER

One of our favorite "Dan Ferris approved" stocks is soaring right now… and our big cheap tech idea is turning out to be a huge winner.

Back in September, we highlighted how several of the world's dominant tech companies were ridiculously cheap after factoring in their giant cash hoards.

We've followed software giant Microsoft in particular because, at $24 per share, our colleague Dan Ferris was calling it one of the "safest stocks in the world." The stock was carving out a beautiful "bad to less bad" bottom.

As you can see from today's chart, Big Softie is blasting out of this bottom. Shares have surged 10% in the past two weeks to reach their highest high in six months.

The success of this trade shows the moneymaking power of mixing "elite company" with "cheap" and "a carved-out bottom." It's one of the greatest trading strategies in the world… and always will be.


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