Microsoft (MSFT) closes above $30 following Windows 7 launch?

Microsoft (MSFT) has been on a tear in the past six months. Back in March, market malaise brought the stock down to $15-$16 levels. Now, with the economy apparently on the mend and individual and institutional investors piling back into the market – especially hot tech stocks -- Microsoft's stock price is in the mid-20s.

Can it cross the $30 level? MSFT hasn't flirted with $30 since the spring of 2008. Whether it returns to those levels again in the next few months depends on several factors, including whether or not the current rally can hold and how the market reacts to Microsoft's new operating system, Windows 7.

To be sure, the recent rise of MSFT already reflects optimism over PC and IT sales returning to pre-recession levels and Microsoft benefiting from increased sales of all of its OS products, ranging from XP installed on netbooks to expensive server software that drives many corporate IT environments. And while Windows 7 is being promoted heavily by Microsoft in the runup to its October 23 launch, many market observers are waiting to see how corporate IT departments react, and to see how well holiday PC sales fare. Is there a lot of pent-up demand for Windows 7, following the recession, and Microsoft's missteps with Vista? If the answer is yes, Microsoft could get a large boost from Wall Street in the months to come.

Prediction: Microsoft (MSFT) will close above $30 per share between launch on October 23 and November 30, 2009.