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Friday, January 30, 2015

Microsoft is on sale

It was a mind-boggling few days for Microsoft (MSFT): It got crashed by 10% on Wed due to its earnings that did not meet the Street’s expectation. It continued to go down on Thu to as low as below $41 at some point. For the long-term readers, you must have known me that this is exactly the moment that excites me. Needless to say, I traded a lot, trying to catch as much  free money as possible from who-knows who wanted to send me.  I was asked if I dared to catch the falling knife. I chuckled. A knife for MSFT for me? It is my baby, whom I have adopted since almost 10 years ago! As I said I started to buy MSFT around $20 when everyone called it a dead money. But MSFT has almost been like an ATM/bank for me, from which I literally have extracted at least over $10K between dividends and short-term income trading, while I'm also seeing it growing. I'm amazed MSFT is still so cheap and I want to buy more whenever there is a "crash". If you ask me which stock to buy if you can only buy one stock for your retirement, MSFT is definitely the one coming to my mind. MSFT is widely oversold at the moment and currently sitting on a very strong support line technically (see below) and I will be very surprised it will continue to decline significantly from here. Of course I could be wrong. But I know this is only me, not you and I know many of you who have MSFT are very nervous about it. I recommend you check this blog I just saw, which may comfort you a bit.


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