Microsoft (NASDAQ:MSFT) has reported a marginal drop in earnings for its fiscal third quarter ending March 31, 2012, on a year-on-year basis but an increase in revenue from sales of Windows software and business products. Revenue increased from $16.4 billion to $17.41 billion while revenue dropped marginally to $5.11 billion (earnings per share of $.60 per share) from $5.23 billion (earnings per share of $.61 per share) in comparison with the same quarter the previous year. The consensus EPS estimate was $.58 per share. Almost by default, Apple (AAPL) and Google (GOOG) have become the glamor tech stocks while Microsoft somewhat unfairly is regarded as just another boring technology investment. While Microsoft may not move as fast as I would like a number of important initiatives have been launched in that could be the second coming of Microsoft on Wall Street. It is worth examining some of these initiatives in detail.

Easily the most ambitious of Microsoft’s initiatives is the radically different Windows 8 that is expected to be launched toward the end of the year. Windows 8 will be a real game changer for Microsoft and many people expect that the upgrade cycle that this software will launch will rival Windows 95, which really pushed the company into the big time. It is important to remember that Windows 8 is not just another Windows upgrade but a genuinely comprehensive and oppressive attempt to provide a unified software platform for every single bit of hardware including tablets and mobile devices.To continue reading, click here.

Netflix (NFLX) provides and sells subscription services for TV shows and movies, offering customers the choice of receiving DVDs by mail, or streaming its available content through various smart devices in the home. Formerly a popular, high-flying growth stock, peaking near $300 per share in July of 2011, the company and the stock have fallen on hard times, and it currently trades around $73 per share. As with all technology stocks, the questions for Netflix are trifold. First, how does it compare to peers? Second, when will its current way of doing business be replaced by the next best thing? Third, how will the company adapt to the changing landscape? Let’s attempt to answer each of these questions, in turn.

Competition, a quick recap

The only direct, apples-to-apples, competition to Netflix is the former video store giant, Blockbuster, now owned by DISH Network (DISH). Both DISH Network and Netflix offer not only streaming entertainment content, but also DVDs through the mail. The Blockbuster division of DISH Network offers the extra component of personally exchanging DVDs in the dwindling number of Blockbuster branded storefronts, but I don’t expect that to be a lasting part of its business model due to unsustainably high overhead.

Coinstar (CSTR), the owner of the unmistakable self-serve DVD kiosks branded as Redbox, is a fringe competitor. Not offering streaming content, users of Redbox rent and return DVDs via roadside kiosks for $1 per day.To continue reading, click here.

Residual income is a much more valuable asset to a long term investment strategy than gains that occur only once. After a single investment yields regular returns, you are able to strengthen your position at no additional cost by placing the returns back into the company. Companies with valuable dividend stock provide regular returns without a loss of stock value and consistent revenue to support the dividend. The ability to support sustained growth over a long period of time shows just how frequently a stock can pay out and how lucrative its payout will be. In this article, I analyze five stocks that, in my opinion, have the durable competitive advantages to succeed over the long run. Of course, this analysis should serve as a starting point for your own due diligence.

Altria (MO) is a potential buy candidate due to its resilience in a difficult market as the leading tobacco producer in the United States. Despite regulations, a decline in smokers and public anti-tobacco sentiments the company has continued to make over $3 billion a year in profits each year. It has persisted despite the major threat imposed on it from regulation and a public drive to move consumers away from cigarettes. Altria pays out quarterly dividends at a $1.64 rate annually and provides a yield of just under 6%. Its dividend grew in 2011 from $0.38 per share to $0.41 and its stock almost doubled from $16 to $28 per share in only three years, making this a stock that you should own. The payout ratio is 93%.

This articles continues my focus on biotechnology stocks. I have included a table for each stock to aid us in staying on point. These biotech have an upside catalyst, making them great candidates for further diligence.

Gilead Sciences Inc. (GILD), trading at about $45.00 per share, is a large cap ($33.72 billion) focused on discovering, developing, and commercializing drugs to treat life-threatening infectious diseases. It has 4 products on the market for the treatment of HIV infection in adults. It also markets Hepsera, an oral formulation for the treatment of chronic hepatitis B, and AmBisome, amphotericin B liposome injection to treat serious invasive fungal infections, to name a few.

It is also close to completing the acquisition of Pharmasset, Inc. (VRUS), which is researching nucleoside/tide analogs for the treatment of chronic hepatitis C virus (HCV) infection, an obvious parallel to GILD’s work on the hepatitis B virus. Gilead has no fewer than 20 therapies in its pipeline, with 5 of these in Phase III. The company is adequately capitalized and has a manageable debt load. It has experienced no significant roadblocks and has an excellent management team on both the business and scientific fronts.

Onyx Pharmaceuticals, Inc. (ONXX) is a mid cap ($2.81 billion) and trading at around $44.00 per share. To continue reading, click here.