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Without much fanfare, IBM (IBM +0.6%) is making fresh all-time highs. Big Blue, which raised its...

Without much fanfare, IBM (IBM +0.6%) is making fresh all-time highs. Big Blue, which raised its analytics/big data sales forecast two weeks ago, currently trades at 12.6x 2013E EPS.
Comments (9)
  • Cliff Wachtel
    , contributor
    Comments (1778) | Send Message
     
    Ok, so? When major indexes are making new highs, their components tend to make highs. One goes with the other. Hardly news, right? The news would be if IBM was not keeping up with the indexes, which would suggest a problem.

     

    Or am I missing something?

     

    Remember. most stocks move with the indexes unless they're doing really well or really badly. All the more so for a stock that is a component of at least one of those indexes (maybe more?)
    13 Mar 2013, 02:53 PM Reply Like
  • mr_dinky_dot_bomb
    , contributor
    Comments (339) | Send Message
     
    "Remember. most stocks move with the indexes unless they're doing really well or really badly. All the more so for a stock that is a component of at least one of those indexes (maybe more?)"

     

    IBM has a Beta of .61 so it will often not move with its market. IBM is much more stable than the DOW or S&P.

     

    If you consider IBM as a long term investment, the current high of $211 is about $80 higher today compared to its market price when the DOW hit the all time high in 2007. As a footnote, in 2007 IBM borrowed about $12 bil to do an accelerated buyback of shares at an average of just below $106 per share.
    13 Mar 2013, 03:33 PM Reply Like
  • nashbyron
    , contributor
    Comments (10) | Send Message
     
    IBM is up 5.5% for March. DJIA up 2.7%. S&P 2.5%.
    13 Mar 2013, 03:42 PM Reply Like
  • artgon
    , contributor
    Comments (9) | Send Message
     
    As an IBM retiree, I am excited about the IBM stock price. But remember, which comes first - the chicken or the egg. IBM contributes to raising the index, not the reverse.
    13 Mar 2013, 03:24 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    AXP is up more than 5% for March. Stock picking in the $DJIA to send it past new highs.

     

    IBM is not cheap though if one considers that it has essentially flat revenue growth and is always at risk of having the premium customer deciding that they can find the same or better QoS for less.
    13 Mar 2013, 04:39 PM Reply Like
  • thechaser
    , contributor
    Comments (498) | Send Message
     
    as this cb led run is approaching its current flameout, the hunt is on for anything that could be bought that can still go up, hence isador b. markowitz comes up in the gunsights;

     

    best contrarian read i ever get is watching this happen, so yeah, i happily sold my ibm longs and buy them back with an after tax gain after the engineered dump comes along
    13 Mar 2013, 04:44 PM Reply Like
  • IgnisFatuus
    , contributor
    Comments (2115) | Send Message
     
    The DJIA is a price weighted. With IBM being the highest priced dow stock a 10 point move influences the average much more that a 10 point move by say INTC.
    13 Mar 2013, 06:48 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2886) | Send Message
     
    Big data is the new precious resource.

     

    IBM has the best big data.
    13 Mar 2013, 09:36 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11107) | Send Message
     
    IBM seems to have finally won the PC wars. The cloud is just another word for saying servers and mainframes have beaten personal data held by individuals. The stock will keep on rising until people decide that there is value actually owning your own computing power and data again.

     

    The main cause for the failure of the PC to stay above cloud data is Microsoft. With 2+ decades of little to no progress SaaS and cloud solutions have been able to build better stuff via the web browser than the PC's OS. Microsoft's technology is a royal failure.
    14 Mar 2013, 12:59 AM Reply Like
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