Gyroscopic Investing

I have a Microsoft position in the VP. Today an analyst said MSFT is overvalued and that its proper price should be in the mid 90s. MSFT closed @ 133.43, down 3.16%.

MSFT seems to be quite focused and beyond the antitrust issues in the news. I am inclined to hang in there. The stock did not drop 15% and seemed to stabilize by day's end. Heck, it may bounce back as this sell-off may have been an occasion for profit-taking. (MSFT has had a substantial run-up recently).

Hhow much heed should be given one analyst's negative comment?
Might today have provided a profit-taking opportunity?

1) overvalued stocks tend to go nowhere but more overvalued.

2) how long is your holding time? If you're looking at a long term hold, I think Microsoft will take care of itself. They have the money and the talent to stay competitive for many, many years to come.

3) from a technical perspective all I see on the chart is a series of higher highs and higher lows going back into the bottom in December. The only moving average it's not above is it's short term 8 day. Momentum definitely went down this week. So on a daily chart it's not clear, it's a mixed bag. The weekly chart still looks solid though.

Pmward,

Just saw your reply. Thanks.

I want MSFT for the long haul. It’s in the Roth IRA so I looking forward to the years to come. Your research outdid mine. You know your stuff. Microsoft seems to be a buy-and-forget stock but should be reviewed whenever rebalancing the 4x25.

Thanks for your thoughts. I feel much better about the whole thing now.

Closing question: any other stocks that might qualify as no-brainers for a VP?

Wouldn't you want your "forever" stocks that you never sell to be in taxable? And then in your tax shelter, you can buy and sell without cap gains taxes, so you can have your trading there?

Xan,

Good point. I will review the potential error(s) of my ways.

Thanks.

bedraggled wrote: ↑Tue Jun 25, 2019 10:14 pm Hhow much heed should be given one analyst's negative comment?
Might today have provided a profit-taking opportunity?

Did you mean a buying opportunity? Or profit-taking in the sense of, it’s had a good run already?

I hold Microsoft shares. I’ve trimmed before, but have no immediate plans to exit altogether.

DS,
Thanks for the comment.

I believe I meant buying opportunity.