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Bill Gates is super rich but his once high-flying computer software business has been in the doldrums since mid-2002 after falling from the 35 level. The issue with Microsoft MSFT has been its failure to grow both its profits and revenues at the exceptional costs the business once loved. In case you choose to get more on surface 3 cover, we recommend thousands of online libraries you might think about pursuing. Any business the size of Microsoft, with a market-cap of 242 million, will find growth an issue due to the size. But this is simply not to mention the stock is dead. Not even close to it, Microsoft remains a viable long-term software business and is cash rich with 34 million or 3.28 per-share in cash. This gives the share plenty of financial freedom to produce or get growth technologies. Microsoft only announced it would spend 1.1 billion in RD at its MSN Internet uni-t in-the FY07. And according to the Wall Street Journal, Microsoft is exploring the likelihood of taking a share in Internet media company Yahoo YHOO to take on Internet marketing behemoth Google GOOG. But with an estimated five-year earnings growth rate of a pitiful 120/70-17, the business has its work cut out for this. Trading at 16.30x its estimated FY07 EPS of 1.44, the stock isnt high priced but is apparently valued not as a growth stock. Browse here at the link surface 3 cover to read how to look at it. Their PEG at first glance of 1.51 is not cheap, but if you discount in-the cash of 3.28 per-share, the estimated PEG drops to around 1,0, a decent worth. Also, if Microsoft can improve o-n its projected 12 growth rate, the PEG would fall further. The truth is Microsoft at the present cost deserves a look. If you want to perform the stock but dont want to pay out the 2,347 for a 100-share block, you may possibly want to take a look at-the long-term options, also known as LEAPS. As an example, the in-the-money January 2008 22.50 Microsoft Call LEAPS not set to expire until January 18, 2008 currently costs an agreement to 380 100 shares. Discover more on the affiliated article by navigating to copyright. What this means is you risk a complete of 380 for the opportunity to participate in the potential benefit of 100 shares of Microsoft over the next 20 weeks. The breakeven price is 26.30. If Microsoft breaks 26.30, youd begin to generate income on your LEAPS. Conversely, if Microsoft does not do anything, your maximum risk is 380 around the original option play. Warning The aforementioned example is for illustrative purposes only and maybe not to be considered as a genuine choice strategy. Because of the higher risk inherent in options, I will suggest you speak with an investment professional before deciding to employ any strategy involving options.. For a second interpretation, consider checking out this month.