Microsoft Corp (NASDAQ:MSFT)
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The world’s leading software company, Microsoft is the force behind the Windows operating systems and the Office suite of software.
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The world’s leading software company, Microsoft is the force behind the Windows operating systems and the Office suite of software.
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Microsoft….. A sleeping Giant
Microsoft has been stereotyped as a non-innovative company, with declining sales, declining margins and market share, and a stagnant share price over the last decade. When viewing the company with a contrarian view and based on facts, Microsoft is a very different company from what is stated above. Double digit revenue growth, along with stronger margins, all priced for a mere pittance of its true private worth. With returns on equity now reaching high 30's and an average earnings multiple under 10x (excluding the one time charge this quarter), this company could be one of the best quality stealth bargains around!
With the majority of their recurring revenues coming from their Office Suite software (over 22 billion) and an ingrained switching fear in the business community, Microsoft has a compelling moat as well. How do we know? Over the last 12 years, Microsoft has failed at making Vista, the Zune, MSN cable, Windows ME, Microsoft Encarta all mixed in with ill-timed and over priced acquisitions. Throw in some poor management (value investors call them ham sandwiches) and you have a recipe for failure. With so many mistakes you would assume the company would be bankrupt by now or close to it, but Microsoft has prevailed as a free cash flow machine regardless; A true testament to a great business. In fact, it makes so much free cash, that they have been able to grow their dividend 700% since 2002 and grow their cash hoard to a whopping 54.1 billion ($6.37 a share)! If you add their dividends and share purchases back into the company that would make Microsoft the largest market capitalized company in the world. Now a question in the back of my mind; what if GREAT management ran the company??
Be patient! I think they might be brighter than you give them credit for!
Office is dying a slow and painful death. Google is going to destroy this company, finishing what Apple has already started.
When Windows 8 comes to market this fall it will be a game changer! Don't write off Microsoft so fast.
I'm still buying shares monthly as I believe in their product and ease of use!
I think msft made a lot of mistakes the past few years but I think with the xbox 360 doing good with 720 maybe just next year and if they link it with windows 8 live community, I think msft will be back to its glory days soon and maybe even be a step ahead of apple in terms of networking. I think aapl destroyed msft in tech inovation but I think msft knows how to link "tech to tech" better than any other company out there and they are setting themselves up for that.
They should definitely focus more on the hardware end of the business, where they actually make quality products.
Microsoft still has some potential, I agree! Especially with the release of Halo 4 and Windows 8 around the corner. However, in the long run, I haven't yet seen anything particularly successful coming out of Microsoft of late. Honestly, the sound of Windows 8 sounds a little cliched to me and I don't expect it to do too well.
What Microsoft really needs to do is start implementing the power of Cloud computing, Big Data, and Artificial Intelligence into their systems and marketing strategies if they wish to have a shot at outpacing Apple who is currently using these game changers.
You're a funny guy.
No, you are.
I agree, MSFT no question has had some issues of late, but the cash machine it drives is unreal, just the exchange network alone is worth $5 for every HTC Android phone , that totals $150 M cash just on that one patent!! . No question the leadership needs a shake up & once that is done things will change.
I know a few MSFT employees & app makers, Windows 8 is the real deal, it will change the company , the change will be so radical that most Windows 7 users will hate it & bitch, but at the end of the day ,W8 & Surface tab which basically be the end of laptop computers we see today , just might wake this sleeping giant.
$40 a share in 12 months? i would take that all day long....
I'm thinking the same thing. Really looking forward to getting a Surface Tablet. Not into Apple at
all. When everyone jumps one way, I tend to go the other way. Personally do not follow the cattle
mentality. Windows 8 looks like a winner! Increasing my MSFT portfolio incremently on a monthly
basis.
noticing MSFT recent deal with MIMV...MIMV ran from .15 to .70 following the deal....suspect it will run again
now that they have formed a pullback base around .40....worth a look... http://nbtequitiesresearch.com/t/l/FN03Dq9MVUUyXVu
What is displacing office? Have you tried to use the Apple Office products? Is any major business using them?
The balance sheet and income statement look very strong!