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    Analytical review Microsoft Corporati on 05.02.2016

    MicrosoftCorporation, #MSFT [NASD]
    Technology, software & Services, USA

    Financial performance of the company:

    Index – DJIA, S&P 500
    Beta – 0.93
    Capitalization – 411.28 B
    Return on asset – 6.50%
    Income – 25.7 В
    Average volume – 39.67 М
    P/E – 37.14
    ATR – 1.52


    Analytical review:

    • The company ranks fourth for capitalization among the issuers trading in the American stock market;
    • On 29 January the company reported for Q2 of the fiscal year. Over the reported period income of Microsoft has increased 25 billion USD (EPS – $0.78). Earnings per share have grown by 11%. Net profit of the company has exceeded 6 billion USD;
    • Company’s executives said at a press conference that due to the decrease of sales of PC in the USA, the profit from sales of Windows licenses has dropped by 5%. The worst situation was with the sale of smart phones. The reduction has exceeded 45% up to 4.5 million smart phones;
    • Other segments of the company’s business demonstrated significant growth. Sales volume MCCB amounted to 9 billion USD or 45% of the targeted profit of 2018. The increase in sale of Surface and Azure service amounted to 29% and 140%. Advertising in Bing has grown by 28%;
    • The company will continue to invest large funds to high-tech companies
    • Investment companies and banks (Morgan Stanley, FBN Securities and RBC Capital) predict the rise in quotes of the company up to 70 USD per share.

    Summary:

    • Report of the company for Q2 of the fiscal year showed that the management of the company is very proficient. The rise in EPS will give confidence to the investors and participants of the stock market, which can boost the rise of the company’s shares. Promising sectors of the company’s business have grown over the past quarter. Large investment funds predict positive dynamics of the company’s shares.
    • Therefore, we expect that company’s quotes will grow in the near future.

    Trading tips for CFD of Microsoft Corporation

    Long-term trading:
    the company has closed “gap up”, which was formed on 29 January in the result of the positive report. If the price breaks down and consolidates above the local resistance level of 52.60 USD, we recommend to open long positions. Risk per trade is less than 1.5% of capital. Stop order can be placed at the level of 50.50. For this position we recommend multi-trade. Take profit can be placed at the levels of 54.50 USD, 57.00 USD and 60.00 USD.


    Medium-term trading: at the moment the issuer is traded at the levels of 51.00 – 51.50 USD. If this level is maintained and in case of the confirmation (for example a pattern of Price Action), we recommend to open long positions. Risk per trade is below 2% of capital. Stop-order can be placed slightly below the signal line. this position we recommend multi-trade. Take profit can be placed at the levels of 53.00 USD, 54.50 USD and 56.00 USD.



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