Feels like a nice calm before the breakout here. I'm buying some more TOL on weakness, some more SBUX here and opening a new position in Microsoft.
Why Microsoft? Well I'm definitely no fanboy -- in fact, I don't use any of their products. But that's because I'm in the position not to. Most people aren't. New versions of Windows (Vista) and Office are coming out next quarter. XBox 360 sales are strong since the PS3 looks so weak. I also like some of the things they are developing under the banner of "Unified Communications." They are tackling the VoIP space with some very innovative products.
Bottom line is that Microsoft has a virtually unassailable competitive position in the operating system and office productivity markets. With new product cycles starting, this should mean increased earnings. And right now, the multiples are just so low. With consumer staples selling off and these funds looking for a home, I think MSFT is the place to go.
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