I agree with this article yet the short term trend is down. Look to buy Mr. Softie at the 200 day MA at $29.52. Patient investors can own now but you may be able to average in a little lower.
Don’t Be So Hard on Microsoft
By DIMITRA DEFOTIS | MORE ARTICLES BY AUTHOR
Windows 8, torrents of free cash flow and a potential dividend increase may lift the underperforming stock. Fred Hickey: “That is the lowest I have seen the multiple in years.”
Windows 8 may provide a window of opportunity for Microsoft investors, but so too should the company’s staggering free cash flow.
Microsoft (ticker: MSFT) watchers are transfixed by the Windows 8 software launch in October, which promises a new era of touch-screen interaction that pits a Microsoft tablet called Surface against the iPad from Apple (AAPL) and similarly slender, Windows-based devices from Hewlett-Packard (HPQ) and Dell (DELL).
Yet investors should also focus on Microsoft’s $29 billion in free cash flow, and the likelihood that its 2.6% dividend yield will rise, possibly this fall. That should shore up Microsoft’s valuation and its stock, which has lagged the Nasdaq Composite for the past five years.