DunbarDaly169

Bill Gates is super-rich but his once high-flying computer software business has been around the doldrums since mid-2002 after falling from your 35 amount. The issue with Microsoft (MSFT) is its failure to develop both its revenues and earnings at the rates the business once loved. Any organization the size of Microsoft, using a market-cap of 242 million, will find growth a problem due to its size. But this is simply not to state the stock is dead. Not even close to it, Microsoft remains a viable long-term software company and is cash rich with 34 million or 3.28 per share in cash. To get another way of interpreting this, consider looking at Using Microsoft CRM - Wedding Blogs - Project Wedding. This provides the stock plenty of financial freedom to develop or buy development systems. Get more on Using Microsoft CRM by navigating to our stately article. Microsoft only announced it would spend 1.1 billion in R&D at its MSN Internet system in-the FY07. And according to the Wall Street Journal, Microsoft is exploring the likelihood of having a position in Internet media firm Yahoo (YHOO) to battle Internet advertising behemoth Google (GOOG). But with an estimated five-year earnings growth rate of the pitiful 120-year, the organization has its work cut-out for it. Trading at 16.30x its estimated FY07 EPS of 1.44, the stock is not expensive but appears to be charged not as a growth stock. Their PEG at first glance of 1.51 isn't cheap, but if you discount in the money of 3.28 per share, the estimated PEG drops to around 1,0, a decent valuation. Also, if Microsoft can improve on its projected 120-volts growth rate, the PEG would drop further. The fact is Microsoft at the present price deserves a look. If you want to perform the stock but dont want to spend the 2,347 to get a 100-share block, you may want to take a peek at the possibilities, also called LEAPS. As an example, the in-the-money January 2008 22.50 Microsoft Call LEAPS perhaps not set to expire until January 18, 2008 currently costs 380 a contract (10-0 shares). This implies you risk an overall total of 380 for the chance to be involved in the potential upside of 100 shares of Microsoft over the next 20 months. The break-even price is 26.30. If Microsoft fails 26.30, you would begin to earn money on your own LEAPS. However, if Microsoft fails to do something, your maximum risk is 380 about the initial option play. Warning These instance is for illustrative purposes only and perhaps not to be considered as a real solution method. Because of the higher risk inherent in options, I recommend you speak with an investment professional before deciding to hire any method involving options..