Elite Club

I had some dreams
They were clouds in my coffee
Clouds in my coffee
--Carly Simon

With Microsoft (MSFT) gapping higher on the heels of a strong quarterly report, the stock is knock-knock-knocking on a $1 trillion market cap.

Mr Softee joins, I believe, Cisco Systems (CSCO), PetroChina (PTR), Apple (AAPL), and Amazon (AMZN) in the elite club of stocks that have touched $1 trillion in market value. None of the other club members have been able to hold it.

Yes, the economics of MSFT's business are among the most favorable on the planet. Its cloud business suggests a bright future for years to come.

Still, exceptional fundamentals do not necessarily translate into epic valuations. Let's see if MSFT can hold onto its club membership.

positions in CSCO, MSFT