Friday, February 1, 2013

MSFT: What Is Wrong With Microsoft?

What Is Wrong With Microsoft?
by David Klein

INTRODUCTION:
Microsoft's (MSFT) stock has been range bound for the last decade while revenues and EPS more than doubled. During the five year period covering 1996-2001, the top line was growing at a CAGR over 20%. In 2001, the P/E was about 40, much too high for a company whose growth rate was trending down. The next five years, the growth was cut in half. The stock traded sideways as EPS continued to rise, offset by a declining P/E. The growth story was no more. read more »

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