The Good And Bad of Microsoft


Some hurting, poorly managed companies can turn out to be great stocks.

Fast Money kicked off their special series "Bad Company, Good Stock" by first taking a look at Microsoft .

After numerous issues with operating system Vista, the failure of the Zune to catch on, and the failed takeover bid for Yahoo, is Microsoft's stock still a good play going forward?

Karen Finerman believes that the company's cash flow and "impenetrable" balance sheet combined with its valuation make it a good stock to own.

Microsoft has more than $20 billion in cash on hand and is trading at a 5 year low in P/E.

Jeff Macke wants to love Microsoft so much, but he says that Microsoft along with Sony is a company that gets the least amount of the greatest number of assets it owns.

Guy Adami is going to continue to own Microsoft and thinks the valuation is compelling.

Tim agrees that the valuation looks very good.

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On Aug 4, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman's Firm Is Short (IYR) (IJR) (MDY) (SPY) (IWM) (COF) (BBT) (XLF), Finerman's Firm And Finerman Own (C) Leaps, Finerman Owns (GS), Finerman's Firm Owns (MO) (MSFT) (PM) (SUN) (TSO) (VLO) (WLP) (UNH) (AET), Macke Owns (MSFT) (WMT) (COST), Macke Is Short (TM), Adami Owns (AGU) (C) (BTU) (GS) (INTC) (MSFT) (NUE), Seymour Owns (AAPL) (CSCO) (INTC) (MER) (MSFT) (TSO) (EEM) (F) (SHLD), Seygem Asset Management Owns (EEV), Joe Terranova Owns (BNI), Jon Najarian Owns (EMC) Calls, Jon Najarian Owns (CSCO) Calls