Martin Shkreli Buys Microsoft Stock After Crunching The Numbers

so if you look at Microsoft's net income they're in 16.7 billion [Music] um 16.7 billion uh last quarter so in a year right I'm just going to multiply by four that's 67 billion all right well I'm going to take the Enterprise Value and divide by 67 billion and I get 27 times earnings not very cheap normally speaking but it's growing at 18% which is pretty fast Revenue growth so that's actually not bad not a bad uh multiple for that kind of Revenue growth not bad at all as a matter of fact um it's kind of a bargain to be honest but the question is will Revenue growth slow or drop or whatever so uh let's continue reading that press release and here you have cash flow and let's see how Microsoft's cash flow differs from their income statement that's a bit of a tricky thing so we're going to do model net income and reported net income and stuff like that but the basic difference between the income statement which is up here where they made 16.7 billion and the cash flow statement so is taking away some of these non-cash items and we get an understanding of actually how much cash they made on a pure basis as opposed to cash let's say on a uh accounting basis which is very different often different not always that different but it's often different and especially in software it could be quite different depending on the situation so let's take a look and we can see we of course you can just look at the bottom but we can see that the cash flow from operations was substantially larger right substantially larger than the net income but there's a trick to that and we're going to look at that in a minute okayer taxes and then what else working capital all right so now we have Capital expenditures so we got to take that out um there's 5340 so quite a lar of capex so we take the capex out you got about uh 20 billion of cash flow so now 20 billion time four of course is 80 billion so we do that math again it's 23 times earnings now that's pretty attractive 23 times earnings for such a rapid grower if Microsoft of course can continue to grow rapidly which by all means it looks like they can it's actually quite an attractive stock so let's see again I I wouldn't Advocate you you know always think you should do more research on a stock before you invest it but that's like I said sort of My Method um of course the second I bought the the market stock market Dro um let's see here Microsoft see let's say we want to buy five shares of Microsoft that's not very much just uh how much just that $1,000 let's see so right now it's the pre-market so the Market's kind of all over the place let's pick the middle price press buy we got to select uh fill outside of regular trading hours and there we go uh it's uh in the middle between uh the bid and the ask the bid price is where buyers will buy the ask price is where sellers will sell so I bid at 25044 which is roughly in the middle of those two if you can't see it let me let me shrink my screen a little bit on Lower bottom here or something I don't know order filled there you go so my order got filled yeah this is like I don't like this resolution actually let see if I can fix this be more of a square 340 by 340 let's try that there we go all right so put put that maybe in the corner try to be mindful all right thanks everyone for coming by the way so I bought some Microsoft there right in the middle this is the account I'm using it's a very small account only $50,000 but I'm using it uh I put $50,000 in here so I could um um trade against Matt Kors who I guess is let's go let's go troll him a little bit what do you guys think Matt cor is some bows though there he is hey up 60% uh that's where post my trades my thoughts you can post your trades your thoughts it's just kind of the community that we're building up outside of the live stream where if you have questions if you just want to share your opinions or your outlook on certain things it is a cool place to be so just wanted to quickly point that out there and once again it's free just put in the code payday and this time around we're going to be doing a little bit of merch giveaway as well with it to celebrate the fact that I am now an old old man let's talk about the market so yesterday the market dropped rallied throughout the day started to sell off right at the end and as I kind of pointed out in my update video yesterday I thought this move to the upside let's say in this spy from 375 to 382 was absolute [ __ ] absolute [ __ ] in fact that's what this entire video is about yeah real the warning I in 22 minutes explained to everyone how I was like uh this I really don't think it's going to hold if I'm being completely forthcoming with all of you I'm surprised how quickly it sold off but look at this retraction in the dollar if the dollar keeps pushing I think this will keep coming down the producer price index information came out this morning right here yesterday we got this okay so [Music] anyway um Microsoft could be putting in a bottom yeah like I said I'm not going to ENT try to enter I mean I'll entertain when I can but you know my goal isn't to jump up and down scream loudly try to like entertain you with this fake Persona I'm giving you the real me sometimes it'll be entertaining sometimes it'll yell at somebody I might have like an intern I'm going to be live streaming with start screaming at him what are you doing I'm not going to do that to a grown man or grown woman it' be too embarrassing but maybe I should I don't know that's what Jim Jim Kramer used to do to Guys Like Me and the other workers what are you doing idiot [ __ ] idiot oh relax Jim don't [ __ ] talk to me thaty was crazy man but you know he was very very very smart investor people kind of sleep on him now that he's retired he's been retired for like 20 years um he's a Trader not an investor really he's a very very good Trader trading and investing are two very different things but he's a super smart guy like people think um he's not uh because he's on TV but the guy went to Harvard and Harvard Law so I don't know I wasn't smart enough to get into Harvard and Harvard Law