Microsoft Corporation ($MSFT) Confident Investor Rating: Poor

Company name Microsoft Corporation
Stock ticker MSFT
Live stock price [stckqut]MSFT[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Fair
P/E growth Poor
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $7.87
Target stock price (averages with growth) $5.09
Target stock price (averages with no growth) $6.6
Target stock price (manual assumptions) $54.2

The following company description is from Google Finance: http://www.google.com/finance?q=msft

Microsoft Corporation is engaged in developing, licensing and supporting a range of software products and services. The Company also designs and sells hardware, and delivers online advertising to the customers. It operates in five segments: Windows & Windows Live Division (Windows Division), Server and Tools, Online Services Division (OSD), Microsoft Business Division (MBD), and Entertainment and Devices Division (EDD). The Company' products include operating systems for personal computers (PCs), servers, phones, and other intelligent devices; server applications for distributed computing environments; productivity applications; business solution applications; desktop and server management tools. In July 2012, the Company purchased Edgewater Fullscope's Process Industries 2 (PI2) software and intellectual property. In July 2012, Comcast Corp. acquired the Company's 50% stake in MSNBC.com. In October 2012, it acquired PhoneFactor Inc. On July 18, 2012, it acquired Yammer, Inc. (Yammer).

 

 

Confident Investor comments: I realize a large number of people use and like Microsoft's products but currently they are on a negative growth trajectory. This is a good example of not just buying the companies that make products you like. At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.

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