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MSFT Continues To Soar

The markets are on the rise including the S&P 500, which is poised for a technical breakout as the Greece debt crisis unwinds. Shares of MSFT have been on a roll, up 6% on the week. Currently the shares are adding to their gains. Upcoming catalysts include second calendar quarter results to be released in July; the company's Analyst Day at its new developer conference (BUILD) in September; Windows Phone 7 / Mango adoption with hardware partner Nokia; strides against current market leaders in cloud computing; entrance in the tablet market at some point; making money in the online business including integration of Skype and improving the search / display business (see below); and continued evolution of Kinect and the next generation Xbox console. The stock currently trades at 8x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.

Office 365 Could Give Google A Run For Its Money (PC World)

For the launch of its first full-fledged online office suite, Office 365, Microsoft is paying particular attention to small and medium-size businesses. Ballmer dropped the names of large companies already using Microsoft cloud services, including DuPont, Hyatt, Starbucks and Volvo. Office 365 combines access to Exchange e-mail, Lync messaging, SharePoint collaboration, the Office Web Apps, all into one monthly subscription. With new collaboration tools like Lync and SharePoint Online, and Web-based versions of staples like Word, Excel, and PowerPoint, Office 365 should give Google a run in this market.

Microsoft Nails Another Company To Pay Royalties On Patents In Connection With Android (SlashGear)

Velocity Micro has become the second company this week to agree to pay royalties to Microsoft to use the Android platform. Earlier this week, General Dynamics entered into a similar agreement for mobile devices, joining HTC. The exact terms of the deal have not been made public, nor exactly what either company will be paying Microsoft. A recent report states that Microsoft has made five times more from Android than their own Windows Phone 7. Yes, that's without building, supporting, or developing a single Android device.

Microsoft Granted Patent To Secretly Intercept, Monitor And Record Skype Calls (InformationWeek)

Microsoft has been granted a patent for technology that acts as a wiretap of sorts for Internet communication, allowing governments or other law-enforcement authorities to record the data without detection. The newly patented technology called Legal Intercept would allow the company to secretly intercept, monitor and record Skype calls. This is clearly stoking privacy concerns. Basically Microsoft bought Skype to spy on us. Lovely.

Ballmer Fights Back At The Critics, By Yelling (GeekWire)

There's a great audio clip of Ballmer speaking at the Seattle Rotary Club where someone asked him for his reaction to people that say it's time for him to leave. He bellowed as only he can, "YOU TELL ME IF I LACK ENERGY OR CONVICTION, or we're not driving all the change we need to drive." I don't think anyone has ever questioned Ballmer's energy or conviction. It's always been about his ability to execute and see around the corner that has been under question.