Like most people I know little about investing in stocks and can spot good ideas only in hindsight. But this time I am going to predict my earnings based on just common sense and good feeling. No thoughtful analysis or recommendations from gurus and so forth.I am going to invest 300 (AM dollars*) in Microsoft (MSFT) and hope to make 400 AM dollars in 6-8 months. My reasons are:
- It is close (24.59 at the close of the market on 7/10/05) to its lowest it has been in about 2yrs.
- I have heard they have huge cash reserves (I personally have not verified this).
- They are going to come up with new products next year, which knowing Microsoft are definitely going to create a huge hype.
There you have them. Now that you have been warned, you might want to rush to your broker early Monday morning. I assure you a bid worth 300 AM dollars is going to drive up the price.
* AM Dollars are Amit’s dollars which means the conversion rate is set by me. I prefer these than talking in terms of percentages.