PetrieCulpepper583

Bill Gates is super rich but his once high-flying software business has been doing the doldrums since mid-2002 after falling from your 35 level. The problem with Microsoft MSFT has been its failure to develop both its profits and earnings in the prices the company once loved. Any company the size of Microsoft, using a market-cap of 242 billion, will see a problem to growth due to the size. But this is not to state the stock is dead. Far from it, Microsoft remains a viable long-term software business and is cash rich with 34 million or 3.28 per share in cash. Thus giving plenty to the stock of economic flexibility to build up or get development systems. Microsoft only announced itd invest 1.1 billion in RD at its MSN Internet uni-t within the FY07. And in line with the Wall Street Journal, Microsoft is exploring the probability of having a spot in Internet media organization Yahoo YHOO to battle Internet marketing behemoth Google GOOG. But with an estimated five-year earnings growth rate of a pitiful 120-volts, the business has its work cut-out for it. Trading at 16.30x its estimated FY07 EPS of 1.44, the stock isnt costly but is apparently listed not as a growth stock. Its PEG at first glance of 1.51 isnt cheap, but if you discount within the money of 3.28 per share, the estimated PEG drops to around 1,0, a decent valuation. Also, if Microsoft can improve o-n its estimated 120-year growth rate, the PEG would decline further. The truth is Microsoft at the present price deserves a look. If you think anything at all, you will maybe require to research about Using Microsoft CRM - Wedding Blogs - Project Wedding. If you want to perform the stock but dont want to pay out the 2,347 to get a block, you may want to take a peek at-the long-term options, also called 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 380 a contract 100 shares. This means you risk an overall total of 380 for the chance to take part in the potential upside of 100 shares of Microsoft over-the next 20 months. The breakeven price is 26.30. Navigating To official site maybe provides suggestions you can give to your mom. You would begin to earn money in your LEAPS, if Microsoft breaks 26.30. However, if Microsoft does not do any such thing, your maximum risk is 380 around the initial option play. Warning These example is for illustrative purposes only and not to be viewed as a genuine choice approach. Due to the higher risk inherent in options, I would recommend you talk to an investment professional before deciding to use any strategy involving options..