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Microsoft Corporation (MSFT $420.26)
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Micron Technology Inc. (MU $457.23)
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Brookfield Corporation Class A Limited Voting Shares (BN $63.00)
Wow...the more you seem to say positive things about these favourite stocks, harder they seem to fall! MSFT is about 10$ from your suggested price. MU which is already inexpensive according to you, is getting even more inexpensive! I am not sure if it is all due to sentiment. For example I read a reasonably good review about UAE AND Saudi Arabia selling their stake in many of the MAG 7 and their commitment to Data centres may be wavering. At least that is one of the theories being floated by the MAG Bears!
If these BIG boys are selling, then there is a long way to reach the bottom, no?
I am still on a "Holding" mode!
Always appreciate your measured answers.
Markets and stocks can't/don't go up all the time. The geopolitical situation is currently a general weight on markets. MU is up 33% in 3 months and is largely flat over 2 months. tehre was some news over a paper about 'TurboQuant' that is impacting MU but this appears to be from a year ago and we think is being over extrapolated in terms of its impact.
MSFT is trading at 20X forward earnings while growing revenue and EPS in the mid-teens with net margins in the 35% range. Markets want to see more traction on the AI side for MSFT, which is fair, but we think they will 'figure it out'.
BN is at 13X forward earnings with good growth expected and while concerns/sentiment around private equity funds might take some time to shake we think the valuation here looks attractive for a longer term investor.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in MSFT, MU.