Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, January 26, 2007

Article Excerpt

MICROSOFT CORP. $30.60, Nasdaq symbol MSFT, earned $0.26 a share in its second fiscal quarter ended December 31, 2006, down 23.5% from $0.34 a year earlier. The company is absorbing costs associated with new hardware and software that are not yet profitable but could make major profit contributions in the next few years. Revenue in the quarter grew 5.9%, to $12.5 billion from $11.8 billion. This figure excludes $1.5 billion in revenue from sales of coupons that let buyers of new computers upgrade to the new Windows Vista operating system. Microsoft has already released the corporate version of Vista, and will start selling the consumer version next week. Vista will probably have a hard time matching the huge initial sales of previous upgrades, but should generate substantial cash flow. The company’s Xbox 360 video game machine is also selling well, and new services like movie downloads will expand its revenue. Microsoft is now a buy. SONY CORP. ADR’s $47.83, New York symbol SNE,…

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