Microsoft Stocks Decline as Sales Decreases

April 29, 2011 By Leave a Comment
Microsoft Stocks

Microsoft Stocks

Microsoft stocks declined recently due to a decrease in the quarterly sales of the Windows OS. However Microsoft Corp was able to meet the profit projections of Wall Street behind the solid sales of the Xbox gaming console and the MS Office applications. Recent decline in the sales of PCs and the entry of tablet PCs affected Microsoft stocks recently.

After the report on the earnings of the company, Microsoft stocks decreased by 1.2 percent during after-hours trading.

According to Channing Smith of Capital Advisors, Microsoft stocks are now more appealing as value stocks instead of growth stocks. Growth investors will gradually let go of Microsoft stocks. On the other hand value investors will also be drawn into Microsoft stocks in the future.

The decrease in PC sales by around one percent in the initial three months of 2011 has contributed to the decline of the Microsoft stocks. Peter Klein of Microsoft indicated that consumer PC spending is expected to be passed by corporate PC spending in about a year. He added that the increasing popularity of tablet PCs has also caused the decline in the sales of netbooks.

Even as Microsoft has surpassed Wall Street projections recently, the value of Microsoft stocks is still at the 2001 level. The entry of tablets caused investors to be concerned on the possible disappointment of the core buyers of Microsoft.

In the past year, Microsoft stocks have declined by 14 percent despite the increase of 16 percent at the Nasdaq.

An increase of 31 percent in net profit, at $0.61 per share or around $5.2 billion, was achieved by Microsoft for the fiscal third quarter. In comparison to the same period last year, the company had a $0.45 or $4 billion net profit.

Although Microsoft stocks decreased, total unit sales increased by 13 percent at $16.4 billion, which is higher than the $16.2 billion projection by analysts, due to the Xbox and Office sales.

The decrease of four percent in the sales of the Windows OS may have contributed to the decline of price of Microsoft stocks. MS Office sales increased by 21 percent while the gaming console unit increased by 60 percent.

Microsoft stocks are currently being traded at half its ten year average which is lesser than the average of other significant tech firms. Despite a 2.5 percent dividend yield, investors are still wary about the Microsoft stocks and how it will perform in the future.

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Blue Chip Stocks Increase Recently in the Market

April 29, 2011 By Leave a Comment
Blue Chip Stocks Increase Recently in the Market

Blue Chip Stocks

Blue chip stocks have continued to increase as the Federal Reserve announcement on maintaining low interest buoyed the optimism in the market. The Dow Jones increased by 0.6 percent or 72.35 point as it closed at 12,763.31, its highest level in nearly three years as blue chip stocks ended on a high note.

The blue chip stocks were led by Boeing, which increased by 3.2 percent or $2.43 closing at $78.55. Procter & Gamble also ended higher closing at $64.50 or an increase of 0.8 percent or $0.48. The positive growth of blue chip stocks also helped the Nasdaq to close at 2,872.53, increasing by 0.1 percent or 2.65 points. The S&P 500 also ended higher at 1,360.48, an increase of 0.4 percent or 4.82.

Blue chip stocks may have boosted the Russell 2000 as it closed at 861.55, an increase of 0.4 percent or 3.24 points. The increase in pending home sales did not affect the market that much as the GDP considerably slowed down despite the increase of blue chip stocks. The market was generally passive to the release of the economic date during the quantitative easing program of the Federal Reserve as blue chip stocks continued their increase.

Even as blue chip stocks increased, some analysts have indicated that the end of the quantitative easing program will be interesting since the market will remain quiet in the next few months. With the increase in blue chip stocks and earnings being in the limelight these days, Sprint Nextel indicated an increase of 6.7 percent or $0.32 as the company reduced its losses in the first quarter.

Akamai Technologies and Aetna has also increased to 34.94 and 41.45 respectively as blue chip stocks recently continued its climb.

Despite the increase in blue chip stocks, Starbucks shares went down by 0.8 percent or $0.31 as it indicated that increasing commodity expenses will likely affect its balance sheet. Shares of Microsoft Corp decreased by 1.3 percent or $0.33 hitting 25.71, while Constellation Energy increased by 5.7 percent or 1.96 at 36.26 even as blue chip stocks increased.

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Silver Bullion Has Topped its 31 Years High

April 1, 2011 By Leave a Comment
Old coins, Precious metals

Silver Bullion

Investors all over the world are dubious of the current global financial system. Deteriorating economic conditions, rising inflation, inflating food prices and numerous other factors have forced investors to drastically change their investment patterns. They are shifting to precious metals and other real commodities as they have a history of safeguarding wealth in times of crises.

Increased demand for precious metals has resulted in skyrocketing prices. Gold bullion currently stands at its all time high and silver bullion has topped its 31 years high. This scenario has raised the prices of old coins and pre 1966 paper currency as well. The worth of an old coin collection has substantially increased.

The fact is backed by the recent 2 full page ads in the NY Times asking people to bring their old gold and silver coins and receive a handsome amount for them. They have also invited people to bring old wrist watches, sterling pitchers, gold wedding bands, wheat pennies and much more and take a guaranteed 20% over the face value.

Representatives of Anderson, Carter, Bascom & Assoc. have warned that old coins and related stuff should not be cleaned as it may harm their value. They are also suggesting that the elevated value for old materials will not last for a long time. Analysis of history reveals that in times of economic uncertainty (just like the current conditions), there has been a dramatic decline in the demand and hence the prices of coins, jewelry and other collectables in multiple parts of the world.

Now is the best time to get rid of the old junk i.e. cash in their value for keeping them for so long.

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