MSFT Flat In Positive Market The market is up strong this morning as a bailout looks promising for Greece. The Euro as well as commodity prices are up as a result. Shares of MSFT are trading near the flatline. Upcoming catalysts include entrance in the tablet market;
Windows Phone 7 / Mango adoption with hardware partner
Nokia; strides against current market leaders in cloud computing; making money in the online business including integration of
Skype and improving the search business (retooling the
Bing /
Yahoo! partnership or just buying them outright); and continued evolution of
Kinect and the next generation
Xbox console. The stock currently trades at
8x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.
Read » Microsoft To Showcase New Tablet Software This Week (Bloomberg) ARM Holdings said Microsoft's adoption of its technology will help Windows software expand into cars and televisions. The chip maker may start generating royalties from Windows-based laptops and tablets as early as next year. Microsoft will preview a Windows operating system running Nvidia's Tegra chip for tablets this week, according to sources. That's more than a year later than Apple.
Read more at Business Insider.
Read » HTC Pays Microsoft $5 Per Android Phone
(Business Insider) Microsoft gets $5 for every HTC phone running Android, according to Citi analyst Walter Pritchard. Microsoft is entitled to money thanks to a patent settlement with HTC over intellectual property infringement. Microsoft is suing other Android phone makers, and it's looking for $7.50 to $12.50 per device. That's one way to get into the game.
Read » Ballmer's Performance Isn't As Horrendous As Some Other Stalwarts
(The New York Times) On a total return basis including dividend payouts, Microsoft shareholders are down just over 10% in ten years and up by 14% in five years. That’s far from gratifying, but looking further across corporate America, Ballmer stomps Jeffrey Immelt’s decade-long reign at G.E. and outdoes Rupert Murdoch’s latest five-year stretch at News Corp. Richard Fairbank at Capital One Financial and Steven Burd at the grocery chain Safeway have also fallen short of Ballmer’s performance.
Read » Daily Trader: Microsoft Is A Large Cap Company To Hold (Seeking Alpha) Microsoft is a hated "dinosaur" of technology that many are predicting to go the way of the eight track. But the company is a cheap stock at under 9x forward earnings and under 8x forward earnings if you back out cash per share. This is a perfect set up, given the oversold nature of the chart and the fact that so many investors are giving up on the stock. When there is blood in the streets, the old timers dust off their rotary phones and call their brokers to buy stocks.
Read » Cash Rich Companies Should Pay Out Two-Thirds Of Earnings As Dividends (The Wall Street Journal) There is a cash crisis in corporate America. But it doesn't come from a shortage of the stuff, but from a surplus. Microsoft alone packed away roughly $100 million a day last quarter. As investor Benjamin Graham pointed out decades ago, the best interests of corporate management and outside investors are at odds. His proposal to the dilemma?
- Investors need to realize that a company's cash is a valuable asset
- Companies should set formal dividend policies
- Leading companies should pay out two-thirds of their earnings as dividends
That's quite a big pay out.
Read » 
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