Tuesday, April 23, 2013

MSFT: Barbarians At The Gate For Microsoft, But History Will Not Repeat

Barbarians At The Gate For Microsoft, But History Will Not Repeat
by Tim Travis

Microsoft's (MSFT) competitive environment is somewhat reminiscent of Rome in the 4th and 5th centuries when the barbarian hordes were at the gates of the great empire. Instead of the Huns or the Visigoths, Microsoft is dealing with the likes of Apple (AAPL) and Google (GOOG) who have beaten Microsoft to the punch in mobile and touch, threatening the grip of Microsoft Windows and its lucrative operating systems business. While the early skirmishes have been lost, I believe that Microsoft is in the midst of a radical and broad offensive that should lift profits significantly over the next several years, and ultimately set the stage for wonderful gains in the stock. The majority of Microsoft's businesses are picking up market share, but because PC sales are in free-fall, obscuring market participants perceptions of the company, investors have the opportunity to buy the stock at a deep discount to its intrinsic value with a strong margin of safety. read more »

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