Journal of Finance and Accounting – TanasiJournal

Archive for September, 2011

Bill Gates is super rich but his once high-flying software company has been in the doldrums since mid-2002 after falling from the $35 level. The problem with Microsoft (MSFT) has been its failure to grow both its revenues and earnings at the superlative rates the company once enjoyed.

Any company the size of Microsoft, with a market-cap of $242 billion, will find growth an issue because of its size. But this is not to say the stock is dead. Far from it, Microsoft remains a viable long-term software company and is cash rich with $34 billion or $3.28 per share in cash. This gives the stock plenty of financial flexibility to develop or buy growth technologies. Microsoft just announced it would spend $1.1 billion in R&D at its MSN Internet unit in the FY07. And according to the Wall Street Journal, Microsoft is exploring the possibility of taking a stake in Internet media company Yahoo (YHOO) to take on Internet advertising behemoth Google (GOOG).

But with an estimated five-year earnings growth rate of a pitiful 12%, the company has its work cut out for it. Trading at 16.30x its estimated FY07 EPS of $1.44, the stock is not expensive but appears to be priced not as a growth stock.

Its PEG on the surface of 1.51 is not cheap, but if you discount in the cash of $3.28 per share, the estimated PEG falls to around 1,0, a decent valuation. Also, if Microsoft can improve on its estimated 12% growth rate, the PEG would decline further.

The fact is Microsoft at the current price deserves a look. If you want to play the stock but don’t want to shell out the $2,347 for a 100-share block, you may want to take a look at the long-term options, also known as LEAPS. For instance, the in-the-money January 2008 $22.50 Microsoft Call LEAPS not set to expire until January 18, 2008 currently costs $380 a contract (100 shares).

This means you risk a total of $380 for the chance to participate in the potential upside of 100 shares of Microsoft over the next 20 months. The breakeven price is $26.30. If Microsoft breaks $26.30, you would begin to make money on your LEAPS. Conversely, if Microsoft fails to do anything, your maximum risk is $380 on the initial option play.

Warning: The aforementioned example is for illustrative purposes only and not to be construed as an actual option strategy. Due to the higher risk inherent in options, I recommend you speak with an investment professional before deciding to employ any strategy involving options.

Since there have been so many people who pay a lot of money for their car insurance, there are so many people right now who are trying to find the best way to spend their money for car insurance. If you are one of them, you have come to the right place since I am going to give you a good car insurance advice that you can apply in your life when you are searching for the right car insurance company for you. The first advice that I will give to you is what kind of car insurance that you need to buy. When you go to a car insurance company, you will be offered by so many kind of coverage that you can buy from them. What I need you to do is to buy the coverage that you really need. If you think that your country is safe from flood, you do not need to buy coverage that will protect you from flood.

The next advice for you is in how you choose the right car insurance company. When you are searching for only one car insurance company on the internet, you will get too many names. What I need you to do when you experience this are to find the one which is the cheapest. To find this, you can always compare one car insurance company to another car insurance company. You need to know that some of car insurance companies sell their insurance cheaper than other company.

In today’s world every thing is done with the help of internet. For every single thing we need the help of internet. World Wide Web has gained much demand. Now for going in a trip the booking are made on internet. So for renting cars also there are many online sites available in the market from whom we can take the help for making our journey more comfortable and excitement. But it become a huge problem to select the best car hiring site as there are many number of sites and one always look for reliable and trustworthy service and so it is recommended to visit www.locationdevoiture.net, which is one of the best location de voiture site. This company has spread its business all over the world including Greece, Spain, USA, Belgium and France. In every country there is the office of this company. There are many people who after using this site found it to be very informative and useful. One can use the site very easily and by just filling out certain details, the booking is completed. At the time of booking there is the option to choose the car which is left for the user so that you can choose the car of your choice and the price is also quoted by the side of it. So according to one’s budget one can rent the car. The payment option is also very simple i.e either by credit or by debit card. In the form one also has to fill the date of journey and place of the trip, pick up and drop down location. There are also some fabulous discounts offered by them and if you are a regular customer then special discount is made avail to you.