NixonWhitworth887

Bill Gates is super rich but his once high-flying computer software company has been in the doldrums since mid-2002 after falling from the 35 level. The problem with Microsoft (MSFT) has been its failure to grow both its earnings and profits in the prices the company once enjoyed. Any business the size of Microsoft, with a market-cap of 242 billion, will find a concern to progress because of its size. But this is not to mention 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. We found out about this month by searching books in the library. This gives plenty to the share of financial flexibility to develop or get growth technologies. Be taught further on surface pro 3 case by going to our unique portfolio. Microsoft just announced it'd spend 1.1 billion in R&D at its MSN Internet uni-t in the FY07. And according to the Wall Street Journal, Microsoft is exploring the probability of having a stake in Internet media firm Yahoo (YHOO) to battle Internet marketing behemoth Google (GOOG). But having an estimated five-year earnings growth rate of the pitiful 120-year, the business has its work cut out for this. Trading at 16.30x its estimated FY07 EPS of 1.44, the stock is not expensive but appears to be priced not as a growth stock. Its PEG at first glance of 1.51 isn't cheap, but if you discount in the income of 3.28 per-share, the estimated PEG drops to around 1,0, an appraisal. Also, if Microsoft could improve o-n its projected 120-volts growth rate, the PEG would decrease further. To study additional information, please consider peeping at surface 3 cover. The fact is Microsoft in the current cost deserves a look. Learn new info on an affiliated encyclopedia - Click here surface 3 cover. If you want to play the stock but dont want to spend the 2,347 for-a 100-share block, you may want to have a look at the long-term options, also referred to as LEAPS. For example, the January 2008 in-the-money 22.50 Microsoft Call LEAPS not set to expire until January 18, 2008 currently costs 380 an agreement (10-0 shares). This means you risk a complete of 380 for the chance to be involved in the potential upside of 100 shares of Microsoft on the next 20 months. The break-even price is 26.30. If Microsoft fails 26.30, you'd start to generate income on your own LEAPS. However, if Microsoft fails to do any such thing, your maximum risk is 380 about the original option play. Warning The aforementioned instance is for illustrative purposes only and maybe not to be considered as an actual choice strategy. Due to the higher risk inherent in options, I would suggest you talk to an investment professional before deciding to hire any strategy involving options..