I like MSFT for a trade off the $27 line of support. If it breaks down to 26.50 I’m out.

MSFT is really an interesting stock as so many things have happened over the last year. You had the breakout from the decade long of nothingness which didn’t end up lasting too long. Then along came this YHOO business and the stock never really held any meaningful strength after that. They had some pops after reporting their qtrs. which have come in with growth of 29%, 32% and 27% this past 3 quarters. The stock is currently trading under 16 PE and more then 40 billion in current assets with about 9.3 billion shares outstanding. Point is it’s cheap.

Yea I know it’s like a gazillion market cap but the fact is they are putting up this growth qtr after qtr. The stock has been hit hard in a difficult market but is also trading like they are going to do something really stupid like buy all of YHOO. I don’t see that happening and I believe when people realize they aren’t going to waste all of their current assets on YHOO we will see that reflected quickly with a few points of upside in the stock.

Position: Getting ready to pull the trigger on the next trip to 27.27