re: 6 reasons to buy MSFT:
I agree with 1,3,and 5, and I too will be adding to my MSFT soon.
#4: unfortunately, I think the focus will not go off the courts, until a final settlement is made. Until then, uncertainty about the future will hold the stock down. At some point, the basics of a final settlement will emerge, and investors will look at it, and say, "I can live with this. The company(s) will still have good products that dominate growing markets, and the share(s) are cheap." But investors won't be able to say that until the appeals process is done or close to done.
#2: I've heard MSFT (management and lawyers), and investors, say this many times. But what factual evidence supports it? None, as far as I can tell. The attitude of the appeals court(s) is a huge unknown. There is nothing other than wishful thinking to support a belief that the appeals court will go easier on Microsoft than the first judge did. I think it'll be a good investment whether I end up with 1 or 2 stocks.
#6: You have to consider the possibility that valuations may return to their long-term range (far below what we saw with the big-cap techs in 1999 and early 2000), and that we may have fed tightenings through 2000, and a recession in 2001. So, I use a 35 multiple, which gives a "bargain" price of 65 and under. |
