Today's Hot Stocks: MSFT, T, LOW, RIMM

Microsoft is Widely Deemed a Company Past its Prime – is MSFT Underrated?

The tech industry darlings, Google (GOOG) and Apple (AAPL), have overshadowed Microsoft (MSFT) for the past decade. Macs and other electronic devices have become more popular to consumers, causing Microsoft’s PC sales, and hence their Window’s operating system sales, to slowly decline.
But it’s possible the stock has attracted so much negative sentiment that the P/E ratio and share price have finally fallen to complementary levels, creating an undervalued stock. Is there enough value for investors to buy in?

Discuss MSFT | Source: Seeking Alpha

AT&T’s Play for T-Mobile is in Jeopardy – What’s Next for the Proposed Merger?

The FCC has begun to strongly scrutinize AT&T’s (T) purchase of competitor T-Mobile as anti-competitive and not in the public’s interest. The public claims from AT&T promising lower prices and a better business model for consumers were proved to be false. Deutsche Telekom, the parent company of T-Mobile, has withdrawn their application with the FCC, planning to focus on the Department of Justice. The deal must be approved by both departments. Is this mega-merger still worth it, or has it become too big of a hassle to supply significant return for investors?

Discuss T | Source: LA Times

Lowe’s Tough Year Overshadows Strong Management, Appealing Dividend

The construction industry has taken a beating since the economy began to take a downturn, specifically the housing market in 2007. The overall economy has shown signs of recovery, but the real estate industry has failed to make any significant strides, leaving dependent construction-related companies such as Lowe’s (LOW) and Home Depot (HD) in the same boat. Disappointing performance in 2011 stays on the forefront despite the stock being a potentially savvy buy thanks to strong management and an increasing dividend. If value is depressed, is it time for investors to buy into Lowe’s for the long haul?

Discuss LOW | Source: Stockpickr

Stock Guru Prem Watsa’s Investments Below Their Buy Price

Fairfax Financial founder Prem Watsa, dubbed the “Canadian Warren Buffett,” is a widely respected investor. Of the 42 stocks in his current portfolio, three have potential value for other investors due to their below-buy prices. Research in Motion (RIMM), the Blackberry manufacturer, has been heavily sold off in recent periods due to the rise of other smartphones. Level 3 Communications (LVLT) has seen revenues decline steadily over the past few years, but has been acquiring companies along the way. Citigroup (C), one of the casualties of the stock market crash in 2008, made a comeback after emerging from the rubble, but has taken a fall since then. Are these three stocks underperforming right now and worth a buy, or are they rare misses for Watsa?

Discuss RIMM, LVLT, C | Source: Stock Guru
Published on Dec 1, 2011
By InvestorGuide Staff

Copyrighted 2020. Content published with author's permission.

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