MGI Research

Thursday, Jul 18th

Last update06:04:25 PM GMT

MGI Quant

Utilizing the MGI Index and MGI Change Vector in combination with key valuation metrics, MGI Quant helps improve the accuracy of company assessments and provide an independent benchmark of overall company performance. Investors and company executives use them to identify areas for improvement in valuation, operating performance, and bottom line results. MGI core quant data is a major input into MGI Advisory Services and Benchmarking engagements. MGI Quant scores are available for over 500 global technology vendors, and are updated on a continuous basis. Unlimited access is available by Subscription, and select research notes are available in the Research Store. Subscribers get priority access to all published research and data as well as analyst consultation.


MGI Research Score Snapshot - Microsoft Corp

For all the power of the Microsoft franchise, there has been little doubt that the company has been struggling during the past several years as is well reflected in the surprisingly modest MGI-X scores. Importantly, though, our predictions of improvement in MSFT economics and business cycle are generating confirmation indicators and beginning to bear fruit for investors. Although the shares have broken out above the $28-$29 price range we discussed in our note of September 17th, we continue to view the shares as attractive. MSFT is announcing Dec 2009 earnings on Jan 28th 2010.

Attachments: (For Subscribers)
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Download this file (MGI_Research_MSFT_Sep_2009.pdf)Microsoft MGI Index Update for Qtr Ending Sep 2009

MGI Research Database - Nov 5th 2009

Since our last MGI Research Database Review dated October 5th, 2009,the MGI-X scores for the June quarter continue to show significant improvement, though the performance remains uneven. At the time of our last report of the 51 scores tallied 53% or 27 of the companies scored had a positive MGI Change Vector (MGI-CV), which represented a notable reversal from the March quarter when the majority of companies still had a negative MGI-CV. Now with 78 companies scored for the June quarter, the percentage of companies with a positive MGI-CV is up to 59% or 46 companies. As we noted in our earlier report, the majority of the improvement has been driven by expense control and management of the balance sheet, however, we are beginning to see some signs that revenues in isolated instances are showing positive growth both on a q/q and more importantly y/y basis.

Attachments: (For Subscribers)
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Download this file (MGI_Research_Performance_Review_Nov_5th_2009.pdf)MGI Research Performance Review Nov 5th 2009

MGI Research Database - Oct 2009

This report provides a detailed overview of the MGI Research Database of MGI scores for 53 companies as of the June 2009 quarter representing the hardware, internet, networking, semiconductor, software and storage sectors.  In addition, MGI analysts provide quantitative and qualitative opinions and outlook on a number of key technology companies.

 

Attachments: (For Subscribers)
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Download this file (MGI_Research_Database_2009-10-05.pdf)MGI Research MGI-X Scores and Market Comment Oct 5 2009

Why Does MGI Index Matter?

We have always emphasized the primary importance of our core index - the MGI Index or MGI-X. With so much pressure on short-term performance, many of our clients focused exclusively on MGI Change Vector (MGICV). While MGI-CV is a key ingredient in our quantitative portfolio construction work, we feel it is an opportune time to remind our clients about the long-term value of the MGI Index. In this research note we analyze mid to longterm performance of tech companies across a spectrum of MGI Index values. The results re-emphasize that companies that have high MGI Index scores tend to be long-term equity performance winners on both an absolute and a relative basis, while companies with low MGI Index scores are great short candidates. Click here to access the full content of this research note.

MGI Extreme Edge - July 2009

The Numbers Tell the Story

Since reaching a peak on June 11th, 2009, the market has retreated and is trying to gain a new footing and a sense of direction based on 2Q2009 earnings. The question is no longer one of whether or not there is a gap between tech stocks valuation and end-market demand. Even for an uninitiated observer it is now clear that the rally was running on vapor such as an annual pilgrimage to the "Gods of the 2nd Half" and the "Gods of Less Bad". Bottom line is that the tech economy is contracting in 2009 and that few companies will show any real growth but will largely“ manage Street expectations” until the comparisons get easier in 4Q2009.

Attachments: (For Subscribers)
File
Download this file (MGI_Research_-_Extreme_EDGE_-_July_2009.pdf)MGI Extreme Edge - July 2009

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