First of all the company has multiple strong product cycles going into 2008. The best thing about Vista is behind them. Whether it rolls out over 2 or 10 years makes no difference. The company is generating more cash flow than anyone else and in this market that is a huge plus. They are also executing much better in gaming and online advertising than people give them credit for. As the bloom comes off the rose at Google and Apple vis a vis their potential for the Enterprise, investors will understand again that Microsoft essentially has no competition and perhaps the best fundamentals of all. Given the low multiples relative to the market and the stunning cash flow yield the stock is a must-own. We can see it higher than $40 but it's a good 2 year target and is up about 20% plus dividends from here. We'd recommend using options ot add to returns given the low volatility of the shares.