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Alexander J. Poulos

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  • IBM Finally Breaks Out: The Earnings Update. [View article]
    jhesr,

    IBM revenue is becoming more annuity like as the service and software divisions are easily predictable high margin businesses. I expect the hardware division to begin to stabilize once the server division is sold to Lenovo. I suspect the margin compression in this division continues to weigh on the entire divisions gross margins. I believe IBM will continue to shrink this division with the proceeds used to acquire smaller software related firms to bolster their offerings in this field. Thanks for reading and commenting.
    Apr 17 11:20 PM | Likes Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    scubasteve80,

    There is no disputing the fact that IBM is undervalued here. Any sort of growth will cause the shares to easily surpass $200 and in my estimation rocket past $215 as well marking a new high in the shares. Thanks for reading and commenting.
    Apr 17 11:15 PM | Likes Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    Momintn,

    Excellent point about SDN, which is the wave of the future. CSCO, unfortunately is caught at the wrong end of this trend and should continue to report weak hardware sales. IBM is correct in diversifying out as much as possible from hardware and into software related products.
    Apr 17 04:04 PM | 1 Like Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    authentic,

    With your average cost it is prudent to simply collect the dividend and watch IBM transform itself. I certainly wish I had shares with your cost basis. Thanks for reading and commenting.
    Apr 17 02:30 PM | Likes Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    royk01,

    I suspect options 3 and 5 are the main culprits. I don't see option 6 as viable, the brand is still quite strong. Option 7 is being rumored to be up for sale similar to what happened in the server division. It will be interesting to see if they will go ahead and divest this asset as well. Thanks for reading and commenting.
    Apr 17 02:29 PM | Likes Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    wdchil,

    The time value for this investment is quite favorable however the question is when will the value be realized. I am hoping for sometime this year, we shall see. Thanks for reading and adding to the conversation.
    Apr 17 02:27 PM | Likes Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    jstratt,

    I share your frustration as I have watched my shares go basically nowhere over the past couple of years. As for your comments on the dividend theory, the company does have room to continue to raise the dividend which is what I expect it will do later on this year. You are correct that they don't have unlimited room to increase it, similar to most companies. I am still willing to hold and allow the story to unfold, yet I do respect your decision. I will contemplate a similar action next year if the share price continues to languish here. Thanks for reading and adding to the conversation.
    Apr 17 02:24 PM | Likes Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    doneright,

    Exactly, thanks for reading and commenting.
    Apr 17 01:57 PM | Likes Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    lowcarb,

    The answer is it depends. As it pertains to IBM, clearly the hardware vendors are having issues selling their wares as evidenced by recent troubles by CSCO, JNPR, ORCL hardware division etc. In IBM's case, I suspect they are actively looking to exit certain portions of this business such as their server division and as rumored their semiconductor division.

    The margins in these areas are compressing as customers are looking for lower cost alternatives. This phenomena is also effecting CSCO, as evidenced by some of the comments on their recent conference calls they are worried about their sales going forward. Thanks for reading and commenting.
    Apr 17 01:55 PM | 1 Like Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    momintn,

    I agree that hardware revenue is becoming less and less relevant as IBM restructures. Interestingly, the naysayer's continue to highlight its deficiencies as proof that IBM has lost its way. Patience is needed here, gains will follow. Thanks for reading and commenting.
    Apr 17 09:12 AM | 1 Like Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    Vijay,

    It was expected to, watch the progress in the two divisions that I highlighted. They will determine the path for IBM going forward. Thanks for reading and commenting.
    Apr 17 08:42 AM | Likes Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    Tom,

    It will be interesting to see where it trades over the next five trading days. If it stabilizes in the 185-188 range, it will be basically flat for the year with roughly 4% less shares already. Not bad, the restructuring continues. Thanks for reading and commenting.
    Apr 17 08:40 AM | 1 Like Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    Neurology,

    The turnaround continues. The areas to focus on is IBM's asset disposal in the Systems and Technology (Hardware) division along with acquisitions and growth in software. The Lenovo deal for its server division should close at some point this year. Every asset disposal has a lag time due to regulation and approval, this is no different. In the interim, management continues to buy the shares while they are extremely undervalued which will reward those who have a long term view.

    Buffet himself bought a huge stake understanding the turnaround would take several years. He realized they are transforming into a service company with an annuity like revenue stream which is what he favors in his investments. He also wanted the shares to languish for a bit so they share repurchases would have a greater impact, which has happened. I can see the transformation and agree with Mr Buffet's assessment and will continue to remain long. Thanks for reading and commenting.
    Apr 17 08:39 AM | 2 Likes Like |Link to Comment
  • IBM Finally Breaks Out: The Earnings Update. [View article]
    Intrepid,

    IBM commentaries usually involve quite a bit of passion from the bulls/bears. I am sure this time will be similar. thanks for reading and commenting.
    Apr 17 08:33 AM | Likes Like |Link to Comment
  • Ensco Plc: Is A 6% Yield Enough To Overcome The Risks Involved In Holding The Shares? [View article]
    Just a reminder of some of the weather related dangers faced by the company.

    Anadarko Petroleum (APC +0.9%) suspends drilling on a Gulf of Mexico deepwater rig that was rocked by weather-driven waves, apparently rupturing the hull column and flooding the ballast tank.
    The Ensco (ESV -1.5%) rig was conducting exploration activities for APC in the Nansen field when the weather front moved through the area; it was slammed by a giant wave and began taking on water.
    ESV says the situation is stable for now, and there is no need to evacuate the 116 people on board the rig.
    Apr 16 11:33 AM | Likes Like |Link to Comment
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