Benito Camela

Microsoft Fined By the EU; Stock Implications

We all knew the EU fine was coming -- The issue that scared people is the company's inability/unwillingnes... to deal with regulators. In general there is not much to gain fighting against bureacrats.

In this case the tree is not letting us see the woods -- This company is in front of a very strong product cycle that will increase EPS over the next few years.

Also, buybacks will continue to be acreetive --- remember with CF generation arroudn $1 billion or more per month they can reduce shares outstanding by 4 to 5% per year.

All in all you are talking about signifcant earnings and CF growth.