I couldn’t resist the prices Mr. Market was offering for Microsoft (MSFT) today. Last Friday Microsoft’s stock took a beating. Shares where down over 11 percent. The company lost more than $32 billion dollars in market capitalization. All this as a result of Microsoft missing profit expectations. Given the delays with Vista and Xbox problems, I wasn’t too surprised. However, Mr. Market flipped out.
I took advantage of the opportunity. I put in a limit order earlier this morning for $24.25 a share in one of my accounts and with Marketocracy. I received the following confirmation from Marketocracy:
Your ticket to buy 4120 shares of MSFT at $24.2500, created at 13:27 May 01 completed at 15:45 May 01. 4120 shares were bought at a net average price of $24.2994 including commissions and fees.
I reran my intrinsic value spreadsheet for Microsoft this morning, and I still get at least $30 per share in value. Given that finding, I decided to pull the trigger and add to my Microsoft position. I don’t normally buy a stock a second time, but I just couldn’t pass up buying some more of the widest moat stock at a discount.