Hello!

Trading fundamentals is a Blog documenting my personal opinion on current market conditions and stocks that I believe are worth a closer look.  I believe that markets have become obsessed with news driven trades and it seems everyone has forgotten about picking stocks based on good old fashioned company research.   I hope the information contained on these pages will show the advantages of picking stocks based on something other than the latest Euro development and provide a valuable resource that can form part of your wider investment research.

Following the information I have provided on each share I will add it to the blogs fantasy portfolio.  The fantasy portfolio does not represent any actual purchases (hence the word ‘fantasy’) and is intended only as a record of companies discussed and how they have performed.





Despite its operating system being the most widely used on the planet and their gaming console the current best seller Microsoft has somehow managed to become the ‘un-cool’ dad of the tech world, the stuffy old timer who just doesn’t get it.  But Microsoft is working hard to change that image and is about to kick off the biggest launch year in Microsoft history!  It's for this reason I have been keeping my eye on Microsoft and I believe it's future value is being greatly underestimated by investors.  I hope the information posted below will help you understand why I am so confident about Microsoft's success and why I believe the share price could hit $40 this year. 


There's room for two at the top


When anyone steps into the mobile computing arena today all focus is whether it will topple Apple ‘is it an iPad killer’? But Microsoft doesn’t need to ‘kill the iPad’, or topple Apple. Microsoft’s main competition as it moves into the tablet and phone arena is Goggle’s Android.  Android products are currently the only viable option if you don’t fancy or can’t afford to purchase from the house of Apple.  However the release of Windows 8 offers users a growing selection of tablets, phones and ultra books, all with a slick new operating system that makes Android products look clunky and outdated.  Once Microsoft has pushed Android to the bottom of the pile they can happily sit along side Apple as the professional alternative to an Apple system. This is how it used to be and is how it will be again.


WHY I DON’T THINK ANDROID CAN COMPETE WITH WINDOWS 8

But crushing Android is not possible I hear you cry!  How will they push Android to the bottom of the pile? In my opinion crushing Android will be easier than people think and for one very important reason.  Android is part of the Google eco system but that eco system is missing a very important piece of the puzzle and that’s a common operating system across all products.  So far there have been over 10 versions of Android since it’s launch in 2008 but I bet most users can’t tell you what one offers over the other. And with companies like Samsung adding their own ‘skin’ to the interface the average user isn’t even aware they are using android!  So what does this all mean?  Well in my opinion users want a common tie, this is why Apple has been so successful; they have a common OS across their tablets phones and PC’s.  It’s slick, easy to use and integrates seamlessly with all their products. Unlike Android, Windows 8 provides users with a common interface across all their products, the Xbox, windows desktops, laptops, tablets and phones will all have the same user interface.  They will all interact seamlessly and give Windows users the type of slick connectivity apple users have come to know and love. 

 

I’ve heard Windows 8 is really hard to use?

The number of reports coming out from so called ‘tech’ sites claiming that windows 8 is complicated when used on a traditional desktop is really quite shocking!  If they seriously find it hard to use then they shouldn’t be working in the tech industry.  Dragging screens up with your mouse and to the side with your mouse is about as simple as it gets and while different to the current operating system it is certainly not difficult to master as the 3 year old in this video will show you!  http://youtu.be/dlZgcAacIxU

Microsoft can’t do hardware (Apart from the world’s most popular games console!)

To all those claiming Microsoft doesn’t have any experience or success in the hardware market I have one thing to say ‘Xbox 360 anyone’?! To date Microsoft has shipped over 70 million units and holds the title for the worlds most popular games console.  It has outsold the PS3 and produced some of the most popular games of all time. 
So dismissing the Surface on the basis that Microsoft has not had any success with hardware is not really a valid point because the XBOX 360 is about as successful as they come.  Oh and last time I checked Microsoft’s website I think the Surface Pro was sold out!

PC sales are declining!

Yes, traditional PC sales are falling but tablets and smart phones are increasing as the line between the two continues to blur.  Everyone is panicking but the playground is just changing and Microsoft is positioned to ensure they benefit from the switch. It doesn’t matter if people decide to buy a tablet, smart phone ultra book or traditional PC the consumer will have a choice of any one of those devices all running Windows 8 and that’s still a licence fee for Microsoft.

Innovators   

As far as I can see Microsoft seem to be the only tech company innovating on such a large scale right now.  Apples OS looks tired and boring, the Galaxy S4 looks like the S3, the blackberry 10 is too late.  Not only has Microsoft re-written their entire OS with our future in mind but they are constantly researching and developing a massive range of  tech that can be used in different applications all over the world.  In my mind this puts Microsoft miles ahead of the competition and an exciting playing in the future of technology.  

My Prediction
I see a very exciting future for Microsoft, day after day I read bad press and it amazes me. The masses have been blinded with the tablets and smart phones of the last few years and stuck with eco systems that dare not evolve!  Microsoft however is willing to take a risk, they are making that jump and are at the cutting edge of technology. Microsoft is so much more than Windows and I just don't see any serious competition from the likes of Apple and Google in those spaces.  I see a cycle coming round where Microsoft will return to the top with the other players taking a back seat as they fail to keep up with the tech explosion that is right around the corner.