Daily Finance on Microsoft

[DirtyP2002]

dallas said:

DirtyP2002 said:

Here is another article, and another opininon.

http://beta.fool.com/et1980/2013/01/13/5-reasons-to-buy-microsoft-now/21511/?source=TheMotleyFool

 

Some of the reasoning there wasn't that great. 

 

For example:

1. increase in future dividend rate -  well, that will cut down on future growth.  A company basically wants to increase dividends when it knows that investing into the company won't provide as good of a return as just giving it away to investors, and is therefore a signal to investors and the markets that future growth won't be as high as it is now.

2. Growth projections-  It lists 14% growth for 2014....... the writer must be stoned. 

3.  The writer lists innovation with the MS Surface.....given the poor sales, the writer must be stoned.

4.  Upcoming Catalyst-  A catalyst is usually identified as a trend either helping or hurting a company ( like more people buying PC's, or growth in techie culture, etc), but lists none of these.  This is bad, as in gaming journalismp level of bad.

1. But this goes for companies who actually need to finance their investments. MS does not need to do this, because they have billions of dollars in cash. You make it sound like paying a dividend is something bad. IBM, Apple and Oracle all do it for a reason.

2. It lists 14% growth untill 2014. And this is not the opininon of the writer, but the opinion of different analysts. You can find it here: http://finance.yahoo.com/q/ae?s=MSFT+Analyst+Estimates

3. Surface had a distribution problem more than anything else and you know it. I still think it (or Surface 2 or whatever) has a decent chance to succeed.

4. I agree the author could have described it better (like the rise of Nokia thanks to MS (+120% in the past 6 months), the push to the cloud, where MS is doing a fantastic job, etc.)