Monday, 12 July 2010

Microsoft - Analyst Recommendation

Janney Capital analyst Sasa Zorovic this morning raised his rating on Microsoft (MSFT) to Buy from Neutral while maintaining his $30. - 12th July 2010.

The last few recommendations, I did exactly the opposite to what Sasa has recommended and was very in the money. This latest upgrade for Microsoft would indicate a good selling opportunity base on the analyst recommendation.

Microsoft trade on very low PE - not far off a company that has zero growth prospects.

Its search engine and mobile apps are about as dead as can be. It has had years to sort out Windows mobile and all it did was provide us with recurring crashes, leaving the gates wide open for Apple. Windows Vista was a disaster and Windows 7.....well we will see. I have in fact moved to Linux as a result of Vista and will never go back to Windows again if I can help it. Nor would I ever by a mobile device with Windows on it.

I know many company CIO's don't like windows...but there once was no alternative. Now with apple coming in, cloud services more available and enhanced security issues...particularly with Windows could be the end to the monopoly on the desktop. Even end users are more familiar with the apple desktop than before. It is far more secure and requires a lot less software to control.

On the server side we all know how unreliable a Microsoft run server is. Unfortunately a lot of software will only run on windows....historically there was no alternative. Now however there are a lot more software developers looking to provide their services on more than one platform as companies seek out cheaper and more secure alternatives.

Could Microsoft be for 2010 what IBM was for the 1990's ? A sitting dead duck ?

1 comment:

  1. "Microsoft must connect the phones to these console games to give it the boost it needs to rival mobile competitors, said Janney Montgomery Scott analyst Sasa Zorovic" -12 October 2010.

    Im not entirely sure if Sasa has realised that Microsoft had the lead on the mobile phones for the last decade !! But their operating system let them down. Those that have used a windows phone in the past will never buy a windows phone ! And everyone else...well Apple and Android are the best alternatives.

    Microsofts share prices has not moved while the market has shot up. I hope Sasa provides us with more buy recommendations that we can sell !

    If you followed Sasas recommendation not only would you be down in absolute terms, but relative to the market....well you may have just as well have given your money to Madoff !


About Me

I try and work a broadly market neutral strategy and based purely on fundamentals and my gut feel.