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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.
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