Erik’s Blog: Board Shorts and Business Suits

Microsoft fell 18 cents today and I went skiing and snowboarding for 7 hours in a nice Wisconsin winter. I am back home in WI visiting family and friends for the holidays and trying to enjoying weather that my body hasn’t seen for almost 2 years. Quite an adjustment. My parents keep their house colder than the average air temp in Honolulu. My girlfriend and I just missed 15 degree weather (that’s F) by a day and have had low to mid thirties for the duration of our trip. It made for slushy ice skating on Christmas Day, but the skiing and snowboarding today was great, overcast and about 33F.

Enough with the small talk, lets get down to business. Microsoft stock price is on par with what I wrote about in the article Is Microsoft a Strong Buy?. I posted at the end of November and the stock had risen above $28 a share. Now if you recall I mentioned that within a few months the stock would more than likely crawl back to $25 a share, just as it has been doing for the last 4 years straight. As a matter of fact 2 months before, in September the price was around $25 a share. I upped my holdings then and have been waiting out the spike.

Some good news about Windows Vista, the Microsoft Live product line, as well as the xBox 360 arriving on shelves and the price raced past $27 on to $28. Some shaky economic news; inflation, bonds, fed hikes, and MSFT is on its downward trend. Today it finished at 26.46 a share. Good buy now? I think so. However I plan on waiting out the downward trend to below $26 and double my holdings. As I mentioned in that previous article I hope to build enough shares that I can buy and sell on the ups and downs while still holding a decent amount in my portfolio.

MSFT also managed to let some of it’s war-chest go upping their 4th quarter dividend. Now if you read the last article you know I’m hot on stocks that offer consistent dividends. MSFT, TWX, GE, and yes even WMT although WMT hasn’t done so well. The dividend is the main reason for my wanting to hold some MSFT in my portfolio at all times.

Wait with me or buy now but I still say MSFT is a good buy. xBox 360 is still a great system, Windows Vista will be released next year, and Google now has a competitor that it can’t buy-out. Stay warm and make some money.

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