Market Summary


Earning Reports

Total Companies: (86) Stock Center View

Symbol Price EPS
MTLS 0.00 06:30 am ET
ARQL -0.13 07:00 am ET
TSE -0.13 2:00 pm ET
ACRX -0.30 After Mkt
ALDW 0.60 After Mkt
ALG 0.72 After Mkt
ALIM -0.17 After Mkt
ALSK -0.01 After Mkt
BREW 0.05 After Mkt
CBPO 0.51 After Mkt
CCRN 0.04 After Mkt
CFI 0.35 After Mkt
CMTL 0.31 After Mkt
CPE 0.08 After Mkt
CVU 0.20 After Mkt
DAR 0.21 After Mkt
ECR -0.10 After Mkt
ESPR -0.55 After Mkt
FXCM 0.17 After Mkt
GARS 0.37 After Mkt
GEF 0.37 After Mkt
GLOW N/A After Mkt
GNCMA -0.21 After Mkt
GSIG 0.19 After Mkt
GTY 0.20 After Mkt
HRB -0.17 After Mkt
HRTG 0.46 After Mkt
INTT 0.05 After Mkt
IRG -0.27 After Mkt
JMBA -0.34 After Mkt
JONE 0.15 After Mkt
LMOS 0.16 After Mkt
MCP -0.33 After Mkt
MLR N/A After Mkt
MYRG 0.37 After Mkt
PEIX 0.15 After Mkt
POWR 0.00 After Mkt
PPO 0.45 After Mkt
PQ 0.02 After Mkt
PRTS -0.06 After Mkt
QTWW -0.10 After Mkt
REXI 0.09 After Mkt
RNDY 0.03 After Mkt
RWC N/A After Mkt
SINA 0.18 After Mkt
SMTC 0.33 After Mkt
SP 0.28 After Mkt
SQNM -0.05 After Mkt
SYX 0.18 After Mkt
TECU N/A After Mkt
TEU -0.01 After Mkt
TST -0.02 After Mkt
WTI -0.40 After Mkt
AGEN -0.01 Before Mkt
AMED 0.26 Before Mkt
ANF 1.15 Before Mkt
ATHM 1.67 Before Mkt
CASM -0.11 Before Mkt
CPTA 0.40 Before Mkt
DOC 0.21 Before Mkt
DSX -0.08 Before Mkt
FRP -1.42 Before Mkt
IBP 0.20 Before Mkt
IFON N/A Before Mkt
LXRX -0.03 Before Mkt
PETM 1.38 Before Mkt
REV 0.48 Before Mkt
RGEN 0.04 Before Mkt
SALT -0.12 Before Mkt
SCMP 0.18 Before Mkt
SNSS -0.20 Before Mkt
SSP 0.40 Before Mkt
SUMR 0.02 Before Mkt
TOUR -0.43 Before Mkt
TRK 0.03 Before Mkt
TSRE 0.09 Before Mkt
AEO 0.34 Unknown
BIOL -0.04 Unknown
CTRP -0.29 Unknown
DRL N/A Unknown
III 0.04 Unknown
INXN 0.13 Unknown
PER N/A Unknown
SURG 0.02 Unknown
VRML N/A Unknown
WB 0.04 Unknown

Today's Earnings Stocks Highlights

Symbol Name Last Change Volume EPS
HRB H&R Block Inc. 33.42 -0.29 (-0.86%) 3.88M -0.17 After Mkt 9.20B
PETM PetSmart, Inc 82.93 0.00 (0.00%) 1.23M 1.38 Before Mkt 8.24B
CTRP International, Ltd. 45.84 0.37 (0.81%) 1.76M -0.29 Unknown 6.26B
← IBM - The Only Company That Should Buy Research in Motion Microsoft, Intel, Cisco (MIC) - Can The Troika Grow Again? (Part 2) →

Microsoft, Intel, Cisco (MIC) - Can The Troika Grow Again? (Part 1)

Posted on 2011-07-04 by Daniel Ho

TroikaMicrosoft (NASDAQ: MSFT), Intel (NASDAQ: INTC), and Cisco Systems (NASDAQ: CSCO), once the darlings of Wall Street, had all fallen out of favor. Even though they have protected their turfs well, and are piling cash into their companies quarter after quarter, their stocks had languished for an entire decade and all of them are now trading at single digits forward P/E ratios.

The problem of the troika was that they are no longer perceived as growth stocks anymore, as each had performed poorly to expand beyond their core businesses. However, even though the troika are no growth stocks anymore, they are now perceived by many investors as undervalued. They are very different from fallen giants such as Nokia or Research in Motion in that they had defended their core businesses very well, and suffer no great market share declines as the others did. Each has their own problem, but they still have tremendous resources, and has the potential to recapture their glories if they play their cards right. There are many articles on the web focusing on their financials to illustrate why they are undervalued, but we will examine what they can do in order to grow again.

Micorsoft could have dominated every aspect of today's emerging technology - search engine, cloud computing, mobile computer, etc., but it missed the chance in every single category. While PC still dominates in market share for personal computers, its growth in consumer sector has been stampeded by the rise of Apple, and its great expectation of growth in Netbook is now decimated by tablet computing. Its mishaps in mobile computing and search engine were illustrated by its scraping of Windows Mobile platform to be replaced by Windows Phone 7 (soon to be Windows Phone 8), and its MSN search getting replaced by Bing.

Even though Microsoft got attacked relentlessly on the consumer front, it still remains the giant in enterprise computing with Windows and Office, allowing the company to rake in billions of profits each quarter. This has enabled Microsoft to pour its resource to keep trying at cracking the missed opportunities.

While Microsoft needs to do better in search engine and clouding computing to counter Google, the biggest headache for Microsoft is in mobile computing. The size of smartphones and tablets could eclipse desktop computing, and Apple and Google are taking both market share and mind share right now, leaving a trail of road kills such as Research in Motion (NASDAQ: RIMM) and Nokia (NYSE: NOK) in their paths. Therefore, for Microsoft to reclaim its significance, it must thrust itself into the mix and become a significant player in the market. To achieve this, it has dropped its antique Mobile Windows and developed Mobile Phone 7, which got good reviews but had not make a dent in the market.

To reclaim its significance in mobile computing, Microsoft struck an alliance with Nokia and moved to acquire Skype. These are good first steps, but Microsoft would need to fortify its offering by courting developers to fill up its app store. Besides providing a well integrated platform, it will probably need a killer app, much like Halo for the XBox, to really stoke the interests for users. It may even have to give special incentives to carriers, either in carrying Windows phones and/or profit sharing in app stores. The bar is high, but we believe it's not impossible for Microsoft to overcome.

With a forward P/E between 9.0 and 10.0, and a dividend yield of ~2.5%, we believe its worthwhile to take a position in Microsoft at its current price range, and wait for Microsoft to crack the growth market in mobile computing. After all, Windows did not win until its 3.0 version.

This article originally appears on

← IBM - The Only Company That Should Buy Research in Motion Microsoft, Intel, Cisco (MIC) - Can The Troika Grow Again? (Part 2) →

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