Friday Equity Ideas: SWKS, MSFT, SKF, USO, PBI, QCOM

Microsoft Corp. (MSFT) – the lead up to the earnings release caused this to fall about 9% following its fourth quarter report. While first quarter guidance was not great, $.47-$.48 per share, a penny or two short of estimates, on revenue of $14.7-$14.9 billion, shy of the $15.06 billion consensus, the full year outlook was not that bad at all; $2.12 to $2.18 on $67.3-$68.1 billion in revenue. It’s hard to ignore Mr. Softie with the stock trading at 11.5x earnings, especially with executive Kevin Johnson’s departure, a sign that a Yahoo deal is becoming less and less likely. Decline seems unwarranted, major support lies at $25. UltraShort Financials ProShares (SKF) – good way to trade the overbought financial stocks (didn’t think we would ever say that). The ETF corresponds to twice the inverse of the daily performance of the... [read full story]