Yahoo Finance tells me MSFT is trading at a Forward PE of 11. To put this into context, consumer goods companies sell at multiples of 11-15, and they have operating margins in the 18ish range, if they're really, really good.
Many of my loyal readers will know that I am a big Apple fan and I remain an Apple fan despite the Antenna issue - only Apple could make a technical malfunction seem so endearing. But Microsoft is looking cheap, like a value stock that generates lots of cash. Did Apple earnings surprise this week? No, because as we had noted before, prior quarter earnings did not reflect the sale of a single iPad.
I'm surprised MSFT gets such a beat down given how generous the valuations are for Food Companies. Anyways, with their dividend yield at 2.1%, probably better to put $$ in MSFT than a savings account. As much as we dislike Windows, its not going away any time soon.
Hugs from Mo' Money.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment