Disclaimer: I am a shareholder in MSFT.
On a steady climb since May and trading at above it's 52 week high, is it time to buy into
MSFT or should we sell our positions and take our profits.
I'm thinking that it's time to buy.
MSFT is in a position to really come out ahead this year. It looks like the newest version of Windows, Vista, will be released on time and with a new release, comes renewed sales. And with renewed sales comes refreshed profit margins. Add to that the now profiting Xbox division and you have the makings for a pretty good run in the beginning of the first quarter of 2007.
Want a better reason? Well, I don't really have one. The company looks strong to me and is worth a buy rating. Dividend yield, while a paltry 1.36% is better than nothing and if profits do indeed rise like I think they will, the yield could raise.
The only dark horse here is in how the company will fare without Bill Gates, but that isn't until mid 2007 and by then the effects of the growth in the 4Q will already be felt.