Get ready to sell the house fellow Masters and with the proceeds buy shares of Microsoft (NASDAQ:MSFT). Microsoft like every other stock trading on the NASDAQ has been beat down and then some over the last month.
Thanks to the decline shares of Mr. Softy are now just $1 away from its 52-week low. We recommend waiting patiently for a bottom and then backing up the truck like no tomorrow. Microsoft may be a slow growth company, but its P/E Ratio of 9.6 and EPS of 2.52 currently make it a classic value play.
Shares of Microsoft haven't been this low since summer of last year and then before that it was the crash in 2009. Microsoft Corp (MSFT) shares have traded between $22.73 and $29.46 over the past 12 months. Microsoft is now trading with a P/E Ratio of 9.6 and EPS of 2.52.
MASTERY Bottom line:
Microsoft may be an 'old school' company but damn if it isn't trading cheap. There are many reasons to buy Microsoft at this level: Cash on hand, Windows 7, XBOX / Kinect, Cloud Services, 2.69% dividend yield, etc.
Forget our opinion, Collins Stewart’s Kevin Buttigieg this week reiterated his "Buy" rating and a $33 price target on Microsoft (MSFT). Today shares of MSFT are at $23.79, thus that works out to a potential 38.7% increase over the next 12 months. The rational -- PC sales may rebound, and that today’s presentation by the company at the “All Things D” conference hosted by the Wall Street Journal could indicate a level of progress on getting a new tablet computer out the door (source: http://blogs.barrons.com).
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