Furthermore, to truly consider and appreciate the current state of the company where competing with the likes of Apple (AAPL) and Google (GOOG), one needs to also consider the fact remains that Microsoft still has a business with very good returns on capital and excellent cash flow. It also helps Microsoft pays an excellent dividend.
With the upcoming release of its Surface tablet as well as its entry into social media with its recent purchase of Yammer, Microsoft may yet be the sleeping giant that many have been waiting for to awaken.
I don't think expecting the stock to climb towards the $40 level should be out of the question.
The Case for OracleLike Mr. Softy, database giant Oracle struggles with the same negative perception due to the new Wall Street flavors of the month, names such as Saleforce.com (CRM), EMC (EMC) and Riverbed (RVBD). However, Oracle's strong management and the fact that it specializes in business intelligence continues to be overlooked. It seems within the cloud market, things continue to appear upside-down. Investors are too quick to ignore Oracle's strong cash position, deep market penetration and its innovative strategies, many of which has catapulted to the number 1 database company within the enterprise. The Case for Intel The company understands what is at stake and realizes that it cannot rest on its laurels because the competition for its current business as well as those heading for the cloud is growing increasingly fierce. But managing the competition is nothing new. Value investors who are thirsty for growth and a decent yield should give it a long look at current levels. I can't help but realize that both chip giant Intel as well as AT&T (T) are in the same boat. Like Apple, Intel is one of those companies that is a recommended buy at any level. With a P/E of 11 and trading at $26 I see at least a 25% upside in the shares in the near term, putting the stock at $33. Like Oracle and Microsoft, the company continues to be under-appreciated for performance that would place other stocks at their 52-week highs. But for Intel it has to deal with being the victim of its own success, where it now has to be great just to be considered good.
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