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MSFT Off As Market Climbs Up
Shares of MSFT are down as the market is recovering post Case-Shiller’s report. Shares of MSFT are also off as investors continue to sell on the dividend news. Upcoming catalysts include upgrade cycles of Office 2010 and Windows 7; any entrance into the tablet market; the launch of Windows 7 mobile; any adoption of Azure (cloud computing); and gamer reaction to Kinect. The stock currently trades at 8x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.
Microsoft’s Advertisement for Windows Phone 7 Is Ridiculous (TechCrunch)
In a new Windows Phone 7 ad, Microsoft is trying to suggest that you’ll get more done with less; less time using your phone. While that might be true, with more and more of us on our phones for increasing reasons, the marketing message is probably not all that effective. John Biggs at TechCrunch suggests that Microsoft would be better off saying that you could launch nuclear missiles with your phone than suggest that Blackberry users are inconsiderate shilly–shalliers.
Microsoft At It Again, Launches Loyalty Program (Search Engine Land)
Microsoft search loyalty programs are back in full swing. Perhaps third time (SearchPerks and Cashback) is the charm. Last week, Microsoft rolled out Bing Rewards, a credit card or airline-style loyalty program that offers users credits that can be redeemed for products, gift cards or charitable donations. People must first install the Bing Bar toolbar, have a Windows Live ID, be on a Windows machine and use Internet Explorer. No Chrome or Firefox, no Macs. When are they going to learn?
Microsoft Ends Its Blogging Platform (Forbes)
In another loss for Microsoft in the online space, the company killed its blogging platform, home to just 7 million bloggers. By comparison, WordPress has 26 million sites, claiming 8.5% of the entire Web and 250 million people visiting WordPress-powered sites any month. So it should also come as no surprise that Microsoft has decided to migrate its bloggers over to WordPress’.
Daily Trader: MSFT A Large Cap Buy With Returning Momentum (Forbes)
Microsoft is rated a Buy with fair value at $28.28, making the stock approximately 12.4% undervalued. The stock shows declining market momentum on its daily chart, so as long as weakness holds at around $23 momentum should return and point the stock towards its one-year price target of $26.26.