Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Posts Tagged ‘top stocks’

Should Apple Worry? Microsoft Targets Mobile Market

By for Profit Confidential

stock market raceApple Inc. (NASDAQ/AAPL) is the king of smartphones, but Microsoft Corporation (NASDAQ/MSFT) wants a big piece of the sector. In fact, Microsoft announced last Monday it would pay $300 million for a 17% stake in a new division of troubled Barnes & Noble, Inc. (NYSE/BKS) that includes the “Nook” e-book reader and downloadable material. Armed with about $58.0 billion in cash, the cost impact will be negligent to Microsoft.

It’s a bet for both companies to try to make a stronger move in the mobile space. Barnes receives a much-needed cash infusion and an app for the Microsoft-powered mobile phones. For Microsoft, the addition of the e-book reader will add to the company’s summer launch of its “Windows 8” mobile version in conjunction with Nokia Corporation (NYSE/NOK).

Microsoft traded at a 52-week high on March 16 on mounting optimism that this past Wall Street tech star will regain its lost glory in the stock market. The hope for Microsoft rests on the Windows 8 operating system and the company’s push to become a player in the lucrative but competitive smartphone and mobility sector. This is where the Barnes deal comes in. Microsoft is also faring better in the stock market with wide acceptance of its “Kinect” and “Xbox” console, which is taking market share from the “Sony PlayStation 3” and “Nintendo Wii.” In my opinion, being the owner of both the Xbox and PS3, the Xbox is better.

The stock has been a disappointment over the past decade and has been viewed as a boring technology play in the stock market with limited growth and a lack of vision…. Read More

How Microsoft May Become One
of the Stars for Growth Investors

By for Profit Confidential

top stocksThe stock market is at a multi-year high. Microsoft Corporation (NASDAQ/MSFT) broke to a new 52-week high on Thursday on mounting optimism that this past Wall Street tech star can regain its lost glory in the stock market. The hope for Microsoft rests on the new to-be-released “Windows 8” operating system and the company’s push to become a player in the lucrative but competitive smartphone and mobility sector. The company is also faring better with wide acceptance of its “Kinect” and “Xbox” console that is taking away market share from the incumbent “Sony PlayStation 3” and “Nintendo Wii.”

The stock has been a disappointment over the past decade, becoming viewed as a boring technology play in the stock market with limited growth and a lack of vision. The push into mobility and gaming should be able to add some spice to the stock, which still trades as a commodity tech stock at 10.76X its fiscal 2013 earnings per share. I feel that Microsoft deserves a higher valuation in the stock market. CEO Steven Ballmer will need to convince Wall Street that Microsoft could be the next technology starlet.

So, while the stock market has recorded impressive gains from other key tech companies, namely Apple Inc. (NASDAQ/AAPL) and its $506-billion in market-cap, Microsoft has been a the market laggard amongst the large mainstream technology companies.

I’m not saying Microsoft will become one of the top stocks, but the company could become more attractive to growth investors. As I said, gaming is adding spice, but the potentially strong surge in the stock I see as possible will be dependent on its mobility … Read More

The Debt Crisis Continues—It’s
Like a Credit Card Shopping
Spree After Losing Your Job

By for Profit Confidential

The spot price of gold is now well above $1,800 an ounce and gold stocks are reaping the benefits. Right now, the stock market is experiencing a crisis of confidence—not in the ability of corporations to generate earnings, but in the macro sense of country economies, debt and deficits. The global debt crisis is just that—a crisis—and it’s been building up for years.

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