Hi Virgil,
MSFT is showing signs of slowdown since the 52-week high of $116.00. There are plenty of PUTs strike prices and even a far amount of LEAPs to play with. It looks like Bill Gates took out some pocket change money from his holdings recently. :-)
With a growth rate of 23.67% the MSFT P/E of 47.6 is a bit rich in today's market place. So, there is a good 30 points of fat that could be shaved off MSFT and it still would be a good value. Heck, put it on the watch list. The stock is moving sideways and the RSI is below 50. It could gap downward on a spooked Nasdaq stampede.
bigcharts.com
NASDAQ: (MSFT : $102 1/4) (MSFTP : $96 3/8) $246,768 million Market Cap at September 9, 1998 Ranks 157th in the Fortune 500 on Revenue & 33rd on Profit. Employs 20,560. Trades at a 30% Premium PE Multiple of 47.6 X, vs. the 36.5 X average multiple at which the Software & Services SubIndustry is priced.
GATES WILLIAM H III OD Disposed 65,000 $112.25 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 45,000 $112.13 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 5,000 $111.94 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 25,000 $112.13 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 100,000 $112.38 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 130,000 $112.43 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 40,000 $112.50 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 20,000 $112.56 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 25,000 $112.63 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 15,000 $112.69 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 40,000 $112.75 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 40,000 $112.88 07/31/98 08/10/98 S ALLEN PAUL G D Disposed 20,000 $113.00 07/31/98 08/10/98 S 153,601,650 GATES WILLIAM H III OD Disposed 10,000 $111.88 07/31/98 08/10/98 S 551,634 GATES WILLIAM H III OD Disposed 35,000 $112.19 07/31/98 08/10/98 S GATES WILLIAM H III OD Disposed 50,000 $112.31 07/31/98 08/10/98 S
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