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NYSE:IBM

IBM Common Stock (IBM)

249.50
+0.40 (0.16%)
as of Jun 18, 2026, 11:57:34 pm Market Open.
156 watching
0
COMMENT
They report Monday. He expects little from a complex quarter because of a recent spin-off. He likes how the CEO has sold assets from its health division.
WAIT
In November they spun off their legacy managed infrastructure services business. Last qaurter they had a revenue shortfall. Ugly. Until it reports in a few weeks, this is a show-me story. But he likes it because it trades at a cheap 12x PE, pays a 4.9% dividend and is investing in cloud, blockchain and AI. Wait and see the quarter.
WATCH
The dinosaur tech names have better PEs, better than the high-flyers in tech, and pay decent dividends well over the 10-year yield. Cisco has broken out, Intel looks interesting, and IBM has had a good run, but maybe wait on this. They're all a decent place to hide and you get paid as the market digests volatile news.
BUY
On Dec. 20, 2021, IBM performed well on that brutal day (like today), because people flocked to names with good valuations to hide there. IBM hasn't fixed its business woes, but IBM is attractive.
DON'T BUY
A disaster for 10 years. Nice dividend. Using all its free cashflow to buy back stock. Mediocre balance sheet. Low valuations, but what's the upside case? Earnings just aren't there. Name of the game is organic revenue growth. Stay away.
DON'T BUY
Mistake to buy value in technology. If you're going to buy tech, buy growth. Revenues declining. Lots of stumbles. Just look at the long-term chart.
DON'T BUY
Offers promise because of past glories, great dividend, valuation. But they just haven't come through. For years. There's a lot more opportunity out there with companies that are doing great things.
DON'T BUY
You have to ask yourself why it's missed the boat so many times when tech has done so well. The high dividend yield concerns him. Avoid. Even though their PE's aren't cheap, look at MSFT and GOOG, as they're real growers with phenomenal franchises, and almost impossible to unseat at the present time in their core businesses.
BUY
Likes IBM here. Pays a nice dividend. Legacy IBM is not great but Red Hat is doing well. A cheap name trading at 11x 2022 with a 8% modelled growth. Doing a lot of the right things to go in the right direction.
BUY
They have a good hybrid cloud strategy. Unlike some on Wall Street, he likes IBM. Their spin-off is fine.
BUY
It held up today when tech stocks plunged. It's in the process of selling off their slow/no-growth hardware businesses and doubling down on their software and especially their hybrid-cloud and AI operations. Today's investor meeting announced very bullish long-term targets: mid-single-digit revenue growth consistently and generate US$35 billion free cash flow over the next three years. Also, their legacy managed infrastructure business will be spun off into a separate business.
RISKY
Interesting story at these levels. Going to be splitting legacy divisions from higher growth. Will take a couple of quarters to show whether higher growth engine will provide more upside. Attractive dividend. Worth looking at for a trade.
DON'T BUY

It is starting to perk up a little. The Redhat acquisition is starting to flow through and show some growth. He still does not love IBM. It will fall into the bucket of 'Old Tech'. Continued share purchases will help with EPS, but revenue growth will continue to be difficult. He would look at other names like the FANG stocks. (Analysts’ price target is $148.00)

DON'T BUY
Very mature tech company that's having trouble finding growth. Technically sound, around the 50-day moving average. Hasn't outperformed the S&P since 2011. Cheap at 12.5x earnings. Revenue growth forecast is anemic at only about 1%. Future is murky. Yield is 4.6% and sustainable.
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