Anthony Scaramucci's Hedge Fund Trade Of The Week: Microsoft (MSFT)

Anthony Scaramucci said on CNBC's Fast Money that investors should not be worried by the fact that hedge fund managers are crowding the same trades, because the stocks that they are buying are more liquid than they were in 2008. He also thinks that there is not so much leverage in the system now. Microsoft Corporation MSFT is this week's hedge fund trade of the week. Microsoft (MSFT) is trading at 10.6 times earnings, and it has 8.6 times earnings net of cash. Mr. Scaramucci also said that MSFT has a new product cycle coming, with Office 2010 and Windows 7. Anthony Scaramucci sees two scenarios for Microsoft. Under the first scenario, MSFT will stay boring like the tech utility, and the management will increase dividend and buy back shares. Second scenario would include new strategic acquisitions. Microsoft Corporation (MSFT) gained 1.40% today, and closed at $24.71.