We have already writ large our appreciation for the under-appreciation of the investment community for Microsoft’s prospects.Â With the stock at $37 maybe it needs time to rest before a sustainable move into the $40’s.
Although RIMM is not a stock we have followed it has been added to our Cloud Computing Theme group in part because of their new product offering that finally addresses the huge market in between the large enterprise where RIMM has long held sway and the individual consumer.
Small businesses can now get the RIMM offerings in bite-sized pieces starting at 5 users.Â Also of interest to our positive outlook for Microsoft they are tightly integrated with Exchange (also Lotus but who cares.)Â Â The facts are that Microsoft continues to have a much richer, more secure offering than what the upstarts Google and Apple can offer today.
We remain huge fans of Google and Apple as companies and sometimes stocks but investors are probably over-estimating their near and intermediate opportunities in the business market.Â The move by RIMM makes it even more apparent.
The best call we saw recently was the set of points made by American Technology Research in supporting their new higher price targets on RIMM.Â They pointed out that low penetration, better carrier strategy, new offerings and huge earnings from replacement phones make RIMM a great long-term growth stock, even at $130.
— Kris Tuttle