Wednesday, April 29, 2009

Great Day for Long-Suffering Microsoft Holders

A +10% day for the Microsoft (MSFT) longs. When was the last time that happened?

Obviously, despite Chris Liddell's somber tones in yesterday's earnings call, the Street had expected much worse and liked the OpEx and CapEx savings the company has quickly put in place.

Where does the stock go from here? I think it's still under-valued relative to its peers, some of whom are up +35% for the year. Microsoft has been tech's forgotten man -- flat for the year even with today's ramp.

Lingering questions remain about how management is going to leverage its strong cash position into actual operational growth, how to deal with sluggish PC demand, and what it is going to do to stop the bleeding in its Internet group. But, for today, Microsoft investors can smile.

Position: Long MSFT.

Originally published in on 4/24/2009 4:23 PM EDT

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