There seem to be thousands of articles written about Microsoft's (MSFT) valuation, poor leadership and stock price. I am surprised, quite frankly, that by now no one has coined, "Steve the Stink Ballmer." People are calling for his resignation even though the underlying business performance has been pretty great.
There is no doubt that Microsoft is cheap at these levels. A P/E of 10, throwing off loads of free cash flow, low debt, tons of cash, great returns on assets and equity and a solid projected earnings growth rate of 10% plus. The important questions to ask at this point are:
What will probably happen in Microsoft's future domestically and internationally?
Can Microsoft's business prospects generate enough investor optimism to move the needle on the stock price?
How much intrinsic value has Microsoft built for itself over the years?
The purpose of this article is to answer these questions and to build a case that Microsoft is undervalued relative to its intrinsic value and its moat is bigger than people think. I will do this by addressing the following areas from a QUALITATIVE perspective:
Microsoft's moat is bigger than people think.
Microsoft's poor marketing and branding in the consumer segment are fixable.
Read More
There is no doubt that Microsoft is cheap at these levels. A P/E of 10, throwing off loads of free cash flow, low debt, tons of cash, great returns on assets and equity and a solid projected earnings growth rate of 10% plus. The important questions to ask at this point are:
What will probably happen in Microsoft's future domestically and internationally?
Can Microsoft's business prospects generate enough investor optimism to move the needle on the stock price?
How much intrinsic value has Microsoft built for itself over the years?
The purpose of this article is to answer these questions and to build a case that Microsoft is undervalued relative to its intrinsic value and its moat is bigger than people think. I will do this by addressing the following areas from a QUALITATIVE perspective:
Microsoft's moat is bigger than people think.
Microsoft's poor marketing and branding in the consumer segment are fixable.
Read More
1 comment:
I am hearing a lot of thought about this issue and I really want to know more about it. I wish that it can be resolve. I will keep an eye on this blog for more update about this issue.
bulk email program
Post a Comment