International Business Machines Corp. (IBM)

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All Comments on IBM

  • commenter
    CM in MA
    Feb 27 09:22 PM
    Google, IBM and the Wall Street Funhouse [view article]
    shmo: IBM generates a ton of cash. With it, IBM pays a dividend, is an active acquirer, spends generously on R&D (see my earlier post), and buys back shares. Even when IBM borrows money for the buybacks, it makes sense so long as their earnings yield is above the borrowing rate. IBM is buying back shares because they are undervalued.

    Disclosure: Commenter has (and has had for a long time) a long position in IBM.     Reply
  • commenter
    nycguy
    Feb 27 05:28 PM
    Is IBM Thinking? [view article]
    Er ... lets also point out how IBM's existing R&D budget dwarfs any of their competitors. And that its holds the maximum number of patents year after year. R&D at IBM is working. Just because its spending more on financial aspects, does not mean it takes away from its R&D. Reply
  • commenter
    markdauvid
    Feb 27 05:06 PM
    Wall Street Breakfast: Must-Know News [view article]
    i worked for radio shack for 5 years and there are 2 major things tey have done wrong. they used to have a large electronic parts business with an entire department just for parts. they cut that way back. the margin on those parts is huge. they also sold many electronic products branded radio shack with a decent margin. in their infinite wisdom they now sell brand names with a narrow margin. i still have 36 shares of rs. my misfortune is that they cost me between $50-$60 a share. Reply
  • commenter
    shmo
    Feb 27 04:16 PM
    Google, IBM and the Wall Street Funhouse [view article]
    This is what concerns me about stock buybacks: It says that the company sees no actionable business opportunities to invest in. And, rather than pay it out in dividends, they'd rather use the cash to attempt to inflate their stock price.

    It's a focus on the stock rather than the business. I think it's the wrong priority for a business. I seem to be very much in the minority.
     Reply
  • commenter
    CM in MA
    Feb 27 03:56 PM
    Google, IBM and the Wall Street Funhouse [view article]
    Thomas: no worries my friend. Reply
  • commenter
    Tom B
    Feb 27 03:35 PM
    Google, IBM and the Wall Street Funhouse [view article]
    Charles: excuse my ignorant swipe against IBM R&D. Reply
  • commenter
    CM in MA
    Feb 27 12:22 PM
    Google, IBM and the Wall Street Funhouse [view article]
    RE: IBM R&D and Acquisition Spending. Yes, IBM's business has been doing well for the past few years. Arguably, IBM's R&D spending and acquisitions are among the many reasons for this performance. Here's some information on this area of IBM's business activity:

    - IBM spent the following on R&D over the last five years: 2003: $5.31b; 2004: $5.87b; 2005: $5.84b; 2006: $6.11b; 2007: $6.15b. This totals $29.28b, and represents roughly 38-40% of total cash flow from operations during this period. To put the annual amounts in perspective, IBM's 2007 R&D spending exceeds the individual market capitalizations of the bottom quartile companies in the S&P 500.

    Through 2007, IBM has led in U.S. patents for 15 consecutive years.

    IBM recently completed its largest acquisition, Cognos, for roughly $5b. For a list of IBM acquisition activity, check en.wikipedia.org/wiki/...

    Disclosure: Commenter has (and has had for a long time) a long position in IBM.     Reply
  • commenter
    User 157718
    Feb 27 12:11 PM
    Google, IBM and the Wall Street Funhouse [view article]
    February 27, 2008
    Kevin Maney, are you inferring Google spends more money on Research and Development than IBM? How much money has IBM spent on R&D in the last five years? How much money has Google spent on R&D in the last five years? How many patents has IBM received in the last five years? How many patents has Google received in the past five years?

    In the last five years IBM has diversified very well on how it spends its money. IBM has increased Dividends to IBM shareholders. IBM has purchased many companies to support and augment its product line. IBM has spent a great of money on R&D which resulted in being awarded numerous patents and which resulted in innovation and enhancement in its products and yes IBM has spent a great deal of money to purchase back its own shares which has increased shareholder value. Enough said!

    Wake up Kevin and remove your blinders and look at the entire picture!

    Joe from Maple Glen     Reply
  • commenter
    Tom B
    Feb 27 10:49 AM
    Google, IBM and the Wall Street Funhouse [view article]
    Thanks. I'd missed the news about the IBM buy back.

    What a marvelous way to spend money-- don't bother with R&D, just stick it a hole [sarcasm].     Reply
  • commenter
    Tom B
    Feb 27 09:25 AM
    Wall Street Breakfast: Must-Know News [view article]
    Well, I guess today's bright spot is the EU fine for MSFT, although that's like pocket change to them.

    I think Ben is nuts if he does another rate cut. I think I'll start papering my bird cage with worthless US dollars.

    Glad I'm not in AMGEN; I'm not likeing Big Pharma in general these days. Much more bad news in that sector than good.     Reply
  • commenter
    vnewspaper
    Feb 27 09:16 AM
    Jim Cramer's Stop Trading! 2/26/08: Much Ado about Price Wars [view article]
    Maybe Jim Cramer forgot to notice that the $15 billion buyback actually adds about 65 cents to this years earnings. Not to mention raising earnings by 5 cents at the same time.

    The reality is that IBM just reduced it's cash position and lowered it's guidance by 60 cents. Depending of course on how you want to look at it.

     Reply
  • commenter
    top_tier
    Feb 27 09:01 AM
    Jim Cramer's Stop Trading! 2/26/08: Much Ado about Price Wars [view article]
    "Cramer called IBM’s quarter “unbelievable” and prefers it to his former horsemen, GOOG and AAPL, which reported lackluster quarters."

    More disinformation by the master Mad Money hypster. Lackluster quarter? Apple reported the best quarter in their history last quarter beating expectations as usual (this was their fiscal 1st quarter). They were under the analysts guidance for this coming quarter (is that unusual for them?). Let's get real for a change.     Reply
  • commenter
    Jon T
    Feb 27 08:58 AM
    Jim Cramer's Stop Trading! 2/26/08: Much Ado about Price Wars [view article]
    Since when could anybody describe Apple's last (record breaking) results 'lacklustre'?

    Possibly, their guidance was, but only against stupid expectations from a bunch ignorant whatsits who commentate on this stuff.

    Amazing.     Reply
  • commenter
    kg's
    Feb 27 08:33 AM
    Is IBM Thinking? [view article]
    They use to be a great company before GREED got to the corporate structure. An retired 30+ year employ. Reply
  • commenter
    deaverb
    Feb 27 08:05 AM
    My Website
    Is IBM Thinking? [view article]
    Excellent article--putting the issues on the table. A strong buyback program, without a big options program for execs (largely unnecessary and certainly expensive), makes sense for IBM. They are the classic "blue chip" generating an awesome cash flow, in services that requires less investment than the traditional IBM businesses.

    The writer thoughtfully points out that this is where IBM is--not the R & D company of the past.     Reply

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