Two Experts Cautiously Optimistic On Microsoft Stock
NEW YORK (Dow Jones)--Microsoft is an important technology holding with a good future, but it is expensive and doesn't afford much protection against earnings disappointments, two fund managers said.
Philip Schettewi, managing partner of Loomis Sayles, and Gerard Hallaren, co-portfolio manager of the Invesco Strategic Technology Fund, were interviewed on CNBC Tuesday morning.
"I like Microsoft, I like their business (and) obviously they dominate," Schettewi said. "I think it's a little expensive, but the market doesn't really seem to care about price."
"It's got business momentum and I think if you're going to own software you should own Microsoft," he said.
He added, however, that it is currently selling at a high multiple.
"I think there are better opportunities out there with at least some price/earnings protection in case you get an earnings disappointment," Schettewi said.
Hallaren said he likes Microsoft's Internet exposure.
"I think the Internet is a major positive change and if you compare Microsoft's way of dealing with the Internet and Intel's way of dealing with the Internet you have got to like Microsoft's approach a whole lot better," Hallaren said.
-By Victor Ozols; 201-938-5394
"Dow Jones News Service"
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