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  Microsoft: A Dip That Delights?
Time: 16:00 EST/21:00 GMT | News Source: Business Week Online | Posted By: Alex Harris

Microsoft's stock has shown a peculiar pattern the past few years of trading up one year and down the next. In 1999 it surged, in 2000 it staggered. In 2001 it climbed, and so far in 2002, it's stumbling once again -- from a high of $67 to the current $51. In fact, Microsoft isn't all that much above its late-2000 low of $43. To some investors, the see-saw pattern is a reflection of just how cyclical the technology sector has become. But to an increasing number of analysts, the recent slump is a buying opportunity.

"Microsoft is near a three-year low due to the tech sell-off, which I consider something of a gift," says Banc of America Securities analyst Bob Austrian, who initiated coverage on Apr. 30 with a buy rating. With a price-earnings ratio of 29, Microsoft is trading at roughly the same multiple as the market, "yet it's much better positioned than your average software stock, or your average stock in general," he says.

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