This post was just published on ZYX Buy Change
Steven Sinofsky, President of Windows and Windows Live at Microsoft, has left the company. The stock is down on the news. This is a buying opportunity.
It appears that the departure was not due to any issues with Windows 8 or the Surface Tablet. Allegedly Sinofsky has an abrasive personality and has become a polarizing figure at Microsoft. In our view, his leaving is a positive for the company.
Consider initiating a 10% tranche in the zone of $26.75 to $27.05. As of this writing the stock is trading around $27.10. If the stock dips further, consider adding 10% tranche each around the following points. $26.56, $26.06, $25.62, $25.22, $24.77, and $24.42. If all orders fill, 70% of the full core position size will be held. Smaller accounts may consider entering only three tranches of 25% each around $27, $26.06, and $25.22.
Target zone is $34 to $36. However, if there is a quick 5% to 8% gain, it may be advisable to take the gain and reenter the position for the longer term at a later time.
Stop zone is $21.43 to $22.34.