Microsoftie…
13 March 2008I was just watching a ditty on King 5 (that’s a Seattle area NBC station) which was showing Evening Magazine, a local program featuring local stories. One of today’s stories was a look back on MSFT - Microsoft, Inc. which of course is headquartered in Redmond, WA. So, at one point they quote that 100 shares bought in 1982-1983 (not sure which) at $21 per share ($2100 total) is now worth north of $800,000. Wow, that’s some run. I for one always kick myself for not buying in early too.
My question now is, are there any companies now that could be the next Microsoft quality growth stock?
The ony one I come up with is GOOG - Google, Inc. and lately they haven’t done very well. As a user of Google advertising programs, I know first hand how they have performed for me, as well as what I have paid to Google. My last year has been one, steady downtrend. Kind of like stocks have faired this year. However, the last two months have been trending higher. I hope it is because they have put their software program tweeking behind them and will allow me as a publisher time to improve my results to my benefit, instead of more to their benefit.
So now with Microsoft chasing YHOO - Yahoo!, Inc., which was also once a good income source for me (not currently though) I am hoping it will again become a great income source to give Google some competition. Keep them honest anyaway.
I currently own some Microsoft and will eventually put some money back to work in Google too. You know, I was caught with my pants down around my ankles with the Micrsoft / Yahoo deal too. I had sold Yahoo and bought Microsoft like three days before Microsoft made their $44 Billion offer for Yahoo. Yep, it happened. I was really ticked. But when I thought about it, it really made sense. I sold Yahoo because I believed Yahoo would report poor earnings results, which they did. That, in turn was the perfect time for Microsoft to offer to buy the company for about a 50% premium to what they were currently trading for.
I am still holding Microsoft because I still believe they are undervalued. With their last earnings at $0.50/ share, I think they should be trading in the $50.00 a share area. I don’t know now how to value a combined Microsoft/Yahoo and just expect it to be a plus for Microsoft.
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