Time & Money Review 10/26/07 – Microsoft is BACK

The great ones always come back for one more fight.  Microsoft (MSFT) an also ran for the past seven years, at least from a stock market perspective, demonstrated that it could still float like a butterfly and sting like a bee.  After the close on Thursday, it reported that its net income rose to $4.3 billion, or 45 cents a share.  Revenue rose to $13.76 billion. Wall Street was expecting earnings of 39 cents on 12.9 billion in revenue.

Microsoft hadn’t strutted its stuff like that in years and Wall Street rewarded it with a 9.5% pop.  Long ago Bill Gates and crew lost its appeal to growth investors and can now be found in many value fund manager’s portfolios.  I am certain that many of them almost had a coronary when their portfolio values increased so substantially.

Microsoft obviously led the entire market higher.  Technology needed the boost as the semiconductors, like BroadCom, continued laying eggs.  For the week, the DOW, S&P 500 and NASDAQ were up 2.1%, 2.3% and 2.9% respectively.

Commodities continued to do what they do and that is to go up.  Oil continued its march to $100/barrel.  It closed at $91.86 up 3.7% for the week.  Gold tacked on $19 closing at $787.50 / oz; up 2.5% for the week.  Gold stocks as represented by the XAU added 4.9% for the week.

The TTaMG portfolios followed suit and had another great week:

• Fab 4              6.6%
• BBO               3.8%
• BRIC              7.6%
• Real Money     4.6%
• TBS                5.9%
• MDs Ag Play  5.8% 

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