Most of you know that I’m more into "below the radar" type growth stocks, but today we’re going to take a quick look at the big boy of the Nasdaq, Microsoft (MSFT). Today’s action shows the stock making a reversal candle (hammer) on increased and above average volume. That was enough for me to pick up a small position. The stock is pretty unloved right now and at a 16x forward P/E and 12.8x EV/EBITDA with a 1.3% dividend yield, its relative valuation is not bad. Next year the new Windows Vista and Office programs will be released, but of course they will face much greater competition this time (from everyone from Apple to Sun Microsystems / Google and the openoffice.org project to open source developers). Cheers!