Revisiting Microsoft and Alcoa
A look into Microsoft (MSFT) and Alcoa Inc. (AA). Could they still have what it takes to put money into investors pockets?
TURNAROUND FOR MICROSOFT?
The guy who bet on Tesla (TSLA) is going to bat for Microsoft (MSFT). I has my attention.
CNNMoney.com --Can Microsoft dethrone Apple?
By Hibah Yousuf
Think the death of PCs will kill Microsoft too? Not so fast, says asset manager Cole Wilcox.
Wilcox thinks Microsoft (MSFT) could reemerge as the most valuable company in the world, dethroning Apple (AAPL), over the next five years. Wilcox, CEO of Longboard Asset Management made the bold call during a presentation at the Stocktoberfest investing conference in San Diego Thursday hosted by social investing site StockTwits.
Microsoft is currently worth about $290 billion, or nearly 40% less than Apple, which is worth almost $460 billion. Last year, Apple's market cap peaked at nearly $660 billion, eclipsing the previous record of almost $620 billion set by Microsoft in 1999 at the height of the tech bubble.
Wilcox said too much is being made of the shift from PCs to tablets and other mobile devices. He thinks Microsoft has a bright future due to its growing presence in cloud-based software platforms for big businesses.
Wilcox has success with forecasting meteoric rises in stocks. When Tesla (TSLA)was trading around $40 per share earlier this year and was heavily shorted, Wilcox predicted the stock would rise to $200. It recently hit a high of $194.50.
But now that it looks like his call may come to fruition much sooner than he was expecting, Wilcox said he's sold much of his Tesla stake and has been using that cash to invest in Microsoft
Microsoft Corporation (MSFT) shares have traded between $26.26 and $36.43 over the past 12 months. MSFT shares are now trading with a P/E Ratio of 13.56 and EPS of 2.58. MSFT closed Monday at $34.99, 4% from its 52-week high. Note, I have no plans on selling my AAPL anytime soon.
ALCOA UP 10% IN OCTOBER
Now that Alcoa Inc. (AA) has left the Dow Jones Ind. Index the stock is up huge. Interesting to say the least.
AA hit $9 today, could actually finish above that line if the momentum holds. On Oct 9th Alcoa increased 4.5% after its Q3 results beat expectations. For those who placed the trade early in Oct are up huge. Question is can the fanfare continue?
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