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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (38714)	8/7/2010 1:52:47 PM
From: Madharry	Respond to of 78473

good question. Ive felt for awhile that the big caps seem cheap historically relative to the small caps, and microsoft seems to be in the middle of a new product cycle. as you said it seem cheap and last week it became a technical buy so I have been accumulating now. Corporations have lots of cash on their balance sheet and they will likely spend some of that money for IT. I figure its one of those low risk situations where I could make 15% or so in a tax free account in a short time, and I decided to reduce a bit of my gold exposure so I had some cash to put into it.

To: Spekulatius who wrote (38714)	8/9/2010 2:42:48 PM
From: Mattyice	Read Replies (3) \| Respond to of 78473

MSFT - Reminds me of (insert analogy here) who was once great but now has been behind the tech curve for 10 years and who continues to throw money at every new innovation and situation that comes up while refusing to return any money to shareholders.. Windows and xbox is not going away in the near term, and there entrance to cloud computing and different enterprise segments i suppose is interesting.... But in my opinion Flattening sales, higher R&D spending = contracting PE for me (similar to RIMM which i have been short since April). Everytime MSFT comes out with a new product, just like RIMM i want to almost smile though i hate to see companies struggle because i just know its most likely not going to end well. With that in mind i bought some JAN 11 $25 Puts today for $1.70, put my money where my mouth is i suppose. I would like differing opinions, it is almost nerve racking to be short a big cap at moment because funds are pouring into these names as they are viewed as undervalued compared with 2011 earnings. oh and FYI if you are nervous about your MSFT purchase, instead of buying the VIX, just buy some puts, implied volatility is coming in around 28% making it not to expensive for a little protection.