MICROSOFT OVERCOMES PC SALES SLIDE $MSFT
Thursday after the close, Microsoft MSFT reported earnings. One conclusion that jumps out from the report and conference call is that Microsoft has overcome the so-called ‘death of the PC.’ Microsoft is generating about 70% of its profits from its commercial business, which is growing at about a 10% rate, yet Microsoft is trading at forward P/E (fiscal year ending June 30, 2015) of about 11. The stock looks inexpensive. There have been two big factors that have kept Microsoft’s valuation in check. First, its earnings have not been consistent. Now that Microsoft is shifting more to a service and subscription model from