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You are here: Experts > Money > Stocks > Tech & Internet Stocks > Microsoft
Expert: Murray Cass
Date: 9/21/2001
Subject: Microsoft
Question
Hi,
Is now a good time to buy microsoft(MSFT) or do you think it's going to go lower. How low do you think it will go before hitting bottom then coming back up. I'd like to get this stock in my portfolio. Any insight would be appreciated. Thank you.
Answer
Hi Tom,
MSFT is a solid company to have in your portfolio. With XBox, Win XP, and longer term it's .Net initiative there is lots of potential. There's also Office 2001; Office on Mac; SQL server is doing well; the Pocket PC; and hopefully an upcoming PC upgrade cycle.
Is it a decent value? Well if you factor in the cash and investments you have a fair value -- not cheap and not really expensive. Given the company's market dominance and strong profitability it should command a premium.
Will it go lower? Probably. We're in a pretty fearful market right now so anything can happen. If you are building a position now is a good time to start. I would buy in small chunks if possible over several weeks or months.
How low will it go? Too low. What that is I have no idea, but the market usually overreacts and creates great bargains. In times like this it is best to be in quality companies that have the resources to weather the storm. I would have a long-term horizon if I were you. Buy over the next few months and plan to hold for 2+ years.
Hope this helps.
Murray
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