David Einhorn's bet on Microsoft is unlikely to pay off any quicker than his investment in the New York Mets.
The hedge-fund investor's recent recommendation of the stock helped push Microsoft (MSFT) shares about 3% higher the next day, near 25. There is a lot for a value investor like Einhorn to admire in the stock. The shares trade at less than 10 times fiscal year 2011 earnings of $2.58 a share, compared with 15 for rival Google (GOOG). And it's generated stellar earnings, despite more than a billion in losses on its Internet business. If $5.78 a share in net cash and investments were factored in, the price/earnings ratio would be closer to seven. What's more, Microsoft is sitting on $50 billion in cash that could be used to boost its 2.6% dividend or to buy back more shares.
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