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Microsoft Corp. (MSFT), an undervalued stock with strong business predictability (closing price $25.25). Part 1

In Quick Pitch on August 29, 2011 at 12:10 am

Preamble: Technical analysis

Microsoft (MSFT) certainly looks like a dividend play, with its range bound prices at the lows of $15 in March 2009 to its climax of $37+ in May 2007, ex dividend yield and share buybacks, and withstood the slings and arrows of outrageous fortune (2000: Dot-com boom and bust; 2001: 9/11 attacks on World Trade Center and 2007: Subprime mortgage crisis).

These are the top 11 mutual/hedge fund gurus which have more than 12 million shares outstanding as at June 30th filing, bearing in mind they are not reflective of a fund’s entire portfolio. Hedge funds may have hedged their positions with derivatives/short other capital structure as an arbitrage play. A cursory glance at Gurus’ latest trades revealed that investors currently have the opportunity to buy the stock at a slightly higher price ($25.25 at the time of this writing) than smart money ie Einhorn, Klarman and Yacktman’s average trade price of $25.04.

Read more here Microsoft Corp. (MSFT), an undervalued stock with strong business predictability (closing price $25.25). Part 1

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