text: THE MICROSOFT INVESTOR: Downgrade And Muted PC Outlook Sends Shares Spinning - Business Insider
  THE MICROSOFT INVESTOR: Downgrade And Muted PC Outlook Sends Shares Spinning
  MSFT Off With Everyone Else
  As the market sinks on unemployment benefits, shares of MSFT are drowning as well. Upcoming catalysts include upgrade cycles of Office 2010 and Windows 7; any entrance into the tablet market; the launch of Windows 7 mobile; and any adoption of Azure, the company's cloud computing play. The stock currently trades at 9x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.
  Wall Street Researching For Those Investors Still In Town (Various)
  I guess there is the whole mobile thing. And computers in the Hamptons.
  Standard & Poor's equity analyst Jim Yin lowered a rating on shares of Microsoft to 'Hold' from 'Buy.' He also lowered his price-target to $31 from $35. The reason behind the downgrade was the slowing global economy and moderating PC unit sales growth. He believes inventories of some PC components have been rising, indicating some PC manufacturers have already seen weaker demand. Jim cut his fiscal 2011 forecast for revenue growth for Windows operating systems to 8% from 17% (that's a big hit!) with a 10 cent impact to earnings per share.
  Meanwhile, David Hilal at FBR Capital recognizes that over the past few years Microsoft shares have often been a value trap; always seemingly "cheap." When the business endured some bumps in the road, the shares would simply remain inexpensive. For the next 12 months, he sees a lot of the trends common with the recent times of outperformance. In terms of valuation, he believes the shares are compelling. David maintains his Outperform rating and $32 price-target.
  Investors Hate Microsoft, But Why? (CNN Money)
  The stock is off 19% this year, only Google and HP (which isn't even all fundamental related) have fared worse. The main concern is the PC refresh cycle, which is going to be big, but just how big is the issue. Either way, it means loads of Windows 7 and Office 2010 licenses for Microsoft to sell (two-thirds of Microsoft's revenue and profits). And the corporate licenses are on average twice the price of the consumer ones. So that gives some confidence for the next one to two years, but with the iPad and mobile revolution on the horizon, neither of which Microsoft is even playing in, beyond that is anyone's guess.
  Investors Head For The Redmond Hills As Market Tanks (thestockmasters)
  What do you do when the stock market goes to hell in a hand basket? You buy the best of the best on the dip. One of those companies, that will continue to rake in the cash and be less volatile overall, is Microsoft. The company reported second quarter earnings of $0.51 per share as revenues rose 22.5% year-over-year with gross margins of 80.23%. Shares have traded between $22 and $31 over the past 12 months and are on the low-end of that range currently.
  Bill Gates Dumps 2 Million Shares Of Microsoft (The Street)
  According to recent SEC filings, Bill Gates recently sold 2 million shares of Microsoft for a value of over $50 million. We're pretty sure this isn't a diversifying-your-portfolio type of sell. And we all know he doesn't necessarily need the liquidity. So what does he know, other than the company is screwed longer-term, that we don't?