Here’s why I think Microsoft (MSFT) has a long way to go before it’s expensive. (May 16, 2017)
Lets talk about Microsoft ( NASDAQ:MSFT ). This actually turned out to be a pretty good squeeze the other day. Not a perfect setup, but a pretty good setup. The reason that I am talking about this now is because this whole WannaCry BS thing with the ransom ware. It was really amazing to me that Microsoft ( NASDAQ:MSFT ) wasn’t trading at $90.00 yesterday. The reason is, because this isn’t Microsoft’s ( NASDAQ:MSFT ) deal that let these scumbags in. This was the NSA’s deal. They were the ones, the NSA, and God love those folks who were trying to keep us safe, not so much those who were spying on us. But this was a cyber hack that they created so that they could spy on people. Microsoft ( NASDAQ:MSFT ) no longer supported XP so it was a vulnerability that everybody actually kind of knew about.
But here is the deal: Microsoft ( NASDAQ:MSFT ) got a bad rap among certain people. This isn’t Microsoft’s ( NASDAQ:MSFT ) fault. This is to Microsoft’s ( NASDAQ:MSFT ) advantage. You think about this, think about all those fine folks who are still using Windows XP. Look, I can tell you ages ago, a couple decades ago, I was working for a fairly big company, whose name shall go unsaid, they were on bootlegged copies of Windows. Why? Because they didn’t want to have to pay a licensing fee for every single Windows user. Do you think maybe they were to only ones? I don’t think so.
My point is, this publicity from this ransom ware attack, this WannaCry, this is the kind of publicity that Microsoft ( NASDAQ:MSFT ) couldn’t even afford to pay for. How many people do you think are going to be thinking, “Hmm, maybe it is time for me to upgrade to Windows 10”? I loved XP. I was kind of ticked when I had to upgrade, but I did upgrade. Here is my point: This stock, technically, is at a great buy point. It broke out of this squeeze. Okay, fine. It has pulled back, found some support above the 50-day moving average, and today it is up on volume. I don’t think this stock sees 69.00 again. The company reports earnings in late July, and my bet is this stock is going to be up substantially between now and then. And my bet is, that their earnings report is going to be really solid, because they are going to say, “Golly, gee whiz, we sure got a lot of folks who are upgrading to Windows 10. Who knew?”
So my suggestion is, you buy Microsoft ( NASDAQ:MSFT ) right now. I am not really a Microsoft ( NASDAQ:MSFT ) guy. I am a Windows guy, but as far as stocks, I can’t remember the last time I have owned Microsoft ( NASDAQ:MSFT ) just because there are other things that are more compelling. But right now, solid company, they just went ex-dividend, they pay a good dividend. The stock is up today even though they went ex-dividend. I think you have got to take this stock under $70.00 and be happy that you have a chance to get it.