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  • This Microsoft Invention Could Finally Destroy the Cable Company Monopoly

    For too long we've been held hostage by our local cable companies. Their monopoly-like status has left us chained to spotty service, inexplicable rate hikes and laughable customer service.

    But a new product is about to trigger a revolution - or, evolution - that could end the cable company reign.

    Today (Tuesday), Microsoft Corp. (Nasdaq: MSFT) revealed its next-gen Xbox, called the Xbox One, a device which may prove capable of replacing your cable box.

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  • Buy, Sell or Hold: Is Microsoft Stock About to Break Out of Its 10-Year Slumber?

    Microsoft Corp. (NASDAQ: MSFT) is the world's largest software company. It's also the world's largest afterthought for most investors.

    "It's an ancient relic," they say, "Apple and Google are the only games in town."

    Or there is always this complaint: "Microsoft has no attractive products and there is no growth"...blah, blah, blah.

    This ongoing apathy is one of the reasons why Microsoft stock has been stuck in the doldrums for years.

    But if you are willing to look a little deeper, you'll discover this sleeping giant is coming out of its long slumber - and it's hungry.

    Don't get me wrong, I'm not going to try and convince you that Microsoft is ready to change its stripes and become a full-scale growth company. Microsoft is what it is - the seller of the market-dominant PC operating system, Windows, and the seller of the market-dominant workplace productivity software, Office.

    However, it does have the potential to become a major competitor in future growth markets like smartphones, tablets and enterprise solutions.

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  • Why the Fate of Microsoft Stock Hinges on Windows 8

    Any hope of jolting Microsoft stock out of years of stagnation lies with the success of its latest attempts to capture a slice of mobile computing.

    Microsoft Corp. (Nasdaq: MSFT) is only a bit player in mobile, currently dominated by devices running Apple Inc.'s (Nasdaq: AAPL) iOS and Google Inc.'s (Nasdaq: GOOG) Android. That's why the company now has a new mobile strategy, with the focal point being Windows 8, the latest version of Microsoft's dominant computer operating system.

    Windows 8 is optimized for the mobile devices such as tablets and smartphones that have stolen the thunder from traditional PCs, a market Microsoft long dominated.

    Microsoft has also ventured into mobile hardware with its new Surface tablet.

    Now Microsoft is betting that the Surface tablet will turn heads and that Windows 8 will put it back in the mobile OS game by luring hardware makers away from Android.

    "I don't control the macro-environment, but there's a huge opportunity in the explosion of devices," Microsoft Chief Financial Officer Peter Klein told Reuters. "There's demand for compelling devices and a connected set of cloud experiences. That's what Windows 8 is all about."

    The Redmond, WA-based company must succeed in mobile to secure a new source of growth capable of moving Microsoft stock out of the doldrums where it has languished for more than a decade. The current 10-year return for MSFT is -6.39% -- yes, negative. Rolling back to November 2001 puts the return on Microsoft stock at -15.75%.

    Owners of Microsoft stock can only cross their fingers and hope the bet pays off.

    How Mobile Success Could Help Microsoft Stock

    Microsoft had little choice but to shift its attention to mobile computing. That's where the money is in tech today.

    Apple's profits have soared from about $2 billion in FY 2006 to $41.7 billion in FY 2012, almost entirely on the strength of the iPhone and iPad.

    More recently, Korean-based Samsung Electronics (PINK: SSNLF) has emerged as the dominant Android hardware maker, with its profits rocketing 91% in the September quarter on strong sales of its Galaxy series of smartphones.

    Sales growth in mobile devices has soared over the past few years. Research firm Gartner expects combined global sales of tablets and smartphones to reach 821 million units this year and rise 46% to pass the 1.2 billion mark next year - triple that of global PC sales.

    So far Microsoft hasn't been able to grab much of this market, with its Windows operating systems on just 2.4% of smartphones, and about 4% of tablets.

    But these projections by research firm IDC see that changing with Windows 8...

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  • Why Sinofsky Left Microsoft (Nasdaq: MSFT)

    It hasn't even been three weeks since the hugely hyped release of Windows 8, and Windows division president Steven Sinofsky has left Microsoft Corp. (Nasdaq: MSFT).

    The abrupt departure has many questioning the success of Windows 8, Sinofsky's relationship with Microsoft CEO Steve Ballmer, and the evolution of the software giant.

    "It is a little surprising to see a departure of someone at this level in charge of so many products with such immediacy, with no transition period. Microsoft is going to enter another period of management transition," Michael Gartenberg, an analyst at Gartner Inc. told Bloomberg News.

    During his tenure at Microsoft, Sinofsky won accolades for leading intricate software projects and making sure they were delivered on time.

    It had been widely speculated that Sinofsky, a 23-year Microsoft veteran, would take the reins when Ballmer stepped down.

    But according to insiders, Sinofsky and Ballmer didn't always see eye-to-eye.

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  • More Proof Microsoft (Nasdaq: MSFT) Must Dump CEO Steve Ballmer

    You can add the failed acquisition of online advertising firm aQuantive to the mounting evidence that Microsoft Corp. (Nasdaq: MSFT) should oust CEO Steve Ballmer.

    Microsoft announced Monday night that it would take a $6.2 billion charge this quarter to reflect the destruction of nearly all of the value of the $6.3 billion deal it made in 2007.

    The write-down will more than wipe out Microsoft's profit for the June quarter, which analysts had projected to be about $5.25 billion.

    The deal was supposed to help Microsoft catch up to Google Inc. (Nasdaq: GOOG) in the race to profit from online search.

    However, Google's U.S. share of search remains about 67%, aided by its own $3.2 billion acquisition of DoubleClick the same year Microsoft bought aQuantive.

    Microsoft has managed to increase Bing's share to about 15.4%, but most of its gains have come from search partner Yahoo! Inc. (Nasdaq: YHOO).

    And Microsoft continues to bleed cash from search, losing $10.4 billion since 2007 and $2 billion in the past year alone.

    Google, meanwhile, used its acquisition of DoubleClick to double its profits to $9.7 billion last year.

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  • 8 Reasons Why Mimi Would Sell Microsoft (Nasdaq:MSFT) and Dump Steve Ballmer

    One day in 1983, my dad asked me a question over dinner after a long day at work.

    He wanted to know what I knew about a little computer company called Microsoft. It was the brainchild of the son of one of his partners at Bogle & Gates, William H. Gates, Sr.

    "Not much," I replied.

    But I did tell my dad that I loved using MS-DOS in the computer lab with my friends. I was a card-carrying member of the nerd herd back in the day, so I spent a lot of time there and knew Microsoft's fledgling PC-based software pretty well.

    My grandmother Mimi, though, had a different point of view. You've heard me mention her before.

    She's the one who was widowed at an early age and became a savvy global investor long before people ever thought to look at the bigger picture.

    Mimi didn't care that the buzz was about the MS-DOS language or even about computers. Having grown up in the Depression, she believed that what people would do with the technology was far more valuable.

    She said she had confidence that Sr.'s son, Bill Gates Jr., understood this -- which is why she invested heavily in the Microsoft IPO in 1986. Enough said.

    Today, though, I think she'd voice an equally strong opinion about Microsoft (Nasdaq: MSFT) CEO Steve Ballmer. In fact, I think she'd fire him. Here's why....

    8 Reasons Why Steve Ballmer Must Go

    1. Ballmer took over Microsoft 12 years ago when the stock was about $60. Now it struggles to maintain $30. Microsoft has $58.16 billion in cash and this is the best Steve Ballmer can do?

    2. Office and Windows are dying. Once the business world's de facto standard, both are being replaced by cheap, easy-to-operate software, much of which is actually free as well as compatible. This is a big problem considering that, according to the Wall Street Journal, roughly 85% of Microsoft's revenue is coming from just two products: Windows and Office.

    3. The company isn't innovating fast enough or aggressively enough. What's more, it's attempting to compensate for its own shortcomings with increasingly ill-conceived acquisitions. For instance, Microsoft forked over $605 million for 18% of the Barnes and Noble Nook e-reader and still has no real ability to compete with Amazon's Kindle. It also couldn't seal the deal with Yahoo. Despite a sizable head start using Yahoo's core search technology, Bing has a mere 15% of the search market today. Ballmer waited nearly four years to respond to the iPad and his "Surface" tablet was ho-hum when it could have been jaw dropping. One more: Microsoft paid $8.5 billion in cash for Skype. Apparently the fact that Skype was not profitable didn't matter. Ballmer's track record suggests to me that he buys businesses that nobody else "must have."

    4. Microsoft's Internet offerings remain wannabes and are highly priced at that. Take Yammer. Microsoft just paid $1.2 billion through the nose to acquire a company that was valued at $600 million last fall when it raised $85 million in a venture offering. Team Ballmer plans to integrate it into Office on the assumption that somehow the Microsoft marriage will endear the brand to customers anxious to socialize business. I think they're delusional. Most Microsoft users I know, including myself, are actively planning to move away from the legacy software we've used for years the first instant we can in favor of software we actually like to use!
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  • Time to Like Microsoft (Nasdaq: MSFT)

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