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  • Understanding Watson: A Closer Look At IBM's Analytics Powerhouse  [View article]
    I watch tennis a lot and IBM is the major part of the game. Watson analyze
    the past statistics to make prediction of win or loss if the players perform
    within certain parameters identified from analysis. Mostly it is accurate.
    Watson does have predictive capability which should help the decision
    making. Currently IBM seem to be pushing Watson in healthcare. It
    could have significant success there to provide insights to the doctors.
    Feb 6, 2016. 01:10 PM | Likes Like |Link to Comment
  • IBM: Use Revenue Recognition Panic As An Advantage  [View article]
    It certainly is not fraudulent. IBM has been missing revenue
    for the last 14 quarters. If fraud was the modus operendi
    they could have reported little more revenue and not miss
    by 1% (adjusting for currency and divestitures). Accounting
    is not physics, its generally accounting principles are flexible.
    Knowingly overstating revenue would damage the image
    of the company that has been around for 104 years and
    has great brand recognition around the world.
    Oct 28, 2015. 08:28 PM | Likes Like |Link to Comment
  • IBM discloses SEC revenue-recognition probe; shares -3%  [View news story]
    IBM is 104 years old co. If cheating is the norm they won't be
    around. SEC investigated the cloud revenue recognition earlier
    and found no wrong doing. SEC has history of doing little
    thing or sometime titillating things. Their chief lawyer ( in
    republican Administration) had no work so he used to watch
    pornography. At the same time, some people informed SEC
    about the shenanigans of Bernie Madoff and they ignored it.
    It turned out to be a mega scandal. SEC had no clue despite
    the tip off.
    Oct 27, 2015. 05:33 PM | 3 Likes Like |Link to Comment
  • The Big Blue Canary In Armonk  [View article]
    Good financial analysis. Ginny Romety in interview with the WSJ
    focused on transformation through cloud, big data, mobile,etc.
    Watson in healthcare is expected to carve out big niche in
    an industry famously inefficient. Mr. Stockman hasn't
    commented at all on new strategic imperatives. Are they not
    going to succeed and why not? After millions of comments on
    revenue, earnings, cash flow and debt there hasn't been a single
    comment on the new strategy. Wall street doesn't seem to have
    any analyst who understand technical side of the business. There
    is more to IBM than financial engineering.
    Oct 27, 2015. 01:16 PM | 2 Likes Like |Link to Comment
  • IBM Is Worse Than It Appears  [View article]
    The article is not very analytical. It doesn't mention tough macro
    environment internationally which generates 60% of IBM
    revenue. In china IBM's revenue declined 17%,ditto for Brazil
    and Russia.A couple of years ago these so called emerging
    market were driving revenue growth. How can you increase
    sales in declining economies? IBM business is not on skid. After
    adjusting for dollar's rise, which is not controlled by IBM, and
    divestitures the revenue decline is 1%.This means that strategic
    growth businesses are almost offsetting the declining legacy
    businesses. With the continuing rate of growth in strategic
    initiatives the decline will be more than offset to show the
    growth. If Chinese market picks up and recession in Brazil
    and Russia ends IBM will post better numbers. I am betting
    on the second half of 2016.
    Oct 20, 2015. 11:42 AM | 3 Likes Like |Link to Comment
  • IBM posts mixed results, cuts guidance; shares drop  [View news story]

    Disappointing. IBM can't seem to get better. Last year the
    EPS forecast of $20 was revised and now again the EPS for 2015
    has been revised down. It has become bad investment. Wish
    I had sold when the price was much higher than the current
    level. Now it would mean waiting for a long time. Huge
    opportunity cost!
    Oct 19, 2015. 04:18 PM | 4 Likes Like |Link to Comment
  • IBM And Oracle: Comparing Revenues And Earnings Over The Past 5 Years  [View article]
    Comparison based on the past performance is not meaningful.
    IBM is in the process of transition. New initiatives like big data
    analytics, social media, cloud and watson is changing their revenue stream. IBM also has done several divestitures while Oracle has made acquisitions. IBM does look bad. If the transition is successful they will be lot better. I am not sure what new strategic initiatives Oracle has in place to continue growth in future.
    Aug 26, 2015. 11:03 AM | 1 Like Like |Link to Comment
  • Is There Really A 'Big 4' In Cloud?  [View article]
    The idea of investing is to earn decent return. Amazon business
    model is to price the product low and gain market share. They
    don't earn reasonable profit. I was amazed how market went
    crazy with Amazon's profit of $92m on sales of $23B. This
    is the profit margin of supermarket, not a high tech company.
    On the other hand IBM earned $3.84B on sales of $20B and
    market disliked it. Gaining market share is good with the smart
    marketing strategy not with low balling the product price and
    sacrifice profit. Investing in amazon is as good as keeping
    money in savings account at your friendly bank ( if there are
    Jul 28, 2015. 03:19 PM | 2 Likes Like |Link to Comment
  • What Everyone Is Missing About IBM  [View article]
    The street has very negative view of IBM. This explains large
    drop in share price after a minor decline in revenue although
    EPSexceeded the estimate. Other companies like Qualcom,
    Amex,Caterpillar have reported drop in earnings and revenue
    and their share prices declined by 2.5% much better than IBM.
    The sentiment seem to be more dominent than rational analysis.
    Jul 23, 2015. 12:26 PM | Likes Like |Link to Comment
  • Does IBM Have An Issue Outside Of Currency?  [View article]
    Wall street is overreacting by dumping IBM share to the tune
    of 8%. Revenue miss was by .04% which is very small compared
    to the loss of $14Billion in market capitalization. Two points
    need to be made:
    1- New strategy involving analytics, cloud, social media and
    mobile is working as indicated by high growth ( 30% in cc)
    and sequntially. EPS has exceeded expectation through margin
    improvement by moving to high value portfolio and cost control.
    Street is ignoring these improvement by getting hung up on
    revenue only as the most important measure.
    2- Street analysts are totally ignoring global macro economic
    situation. China, Brazil, Russia, Europe and Middle East have
    sluggish economies. IMF has revised global growth rate down
    several times. WS analysts are suggesting that IBM (60%
    revenue from overseas) should show growth irrespective of
    market condition. These analysts don't know macro economics
    and have no idea of markets outside USA. WS reaction seem to
    be more sentimental than analytical.
    Jul 22, 2015. 04:56 PM | 1 Like Like |Link to Comment
  • The Most Alarming Metric From IBM's Quarter  [View article]
    IBM is improving sequentially from quarter to quarter. Revenue
    miss was really small. Due to divestitures and currency issues
    headlines exaggerate the decline by 13%. Decline is less than
    1% after adjustments. Trend is improvement. Unfortunately
    BRICS, which were a growth market at one time, are sluggish
    and IBM is struggling there. Europe is stagnant and Middle East
    is in turmoil. That makes it harder for IBM with 60% revenue
    coming from overseas.
    Jul 21, 2015. 04:18 PM | 1 Like Like |Link to Comment
  • The Most Alarming Metric From IBM's Quarter  [View article]
    It will become Amazon. Lots of revenue and very slim profit.
    Jul 21, 2015. 04:08 PM | Likes Like |Link to Comment
  • IBM -6.3%; Street cuts estimates, debates turnaround after mixed Q2  [View news story]
    It will take couple of years for IBM to turn around. On the
    positive side IBM's new strategic initiatives are performing well.
    Good call. Deterioration in legacy business will continue till it is
    offset by new businesses atleast to account for 50% of total
    revenue and growth of 10% to 15%. Too bad management
    wasn't alert to the changing techonology and the market and
    hung on to the legacy business for too long.
    Jul 21, 2015. 03:39 PM | 4 Likes Like |Link to Comment
  • Security Concerns Put IBM / Lenovo x86 Server Deal In Limbo  [View article]
    US Govt. is playing havoc with IT companies. Many foreign govt. are wary of US companies because of their involvement with NSA. Germany just canceled the contract with Verizon. China is pushing businesses to use Chinese IT products.
    CISCO, IBM, Microsoft and others are affected by NSA snooping. Is this really free enterprise system?
    Jul 2, 2014. 12:20 AM | 1 Like Like |Link to Comment
  • Warren Buffett Is Missing Red Flags At IBM  [View article]
    Amazon will beat IBM or any other company in contract bidding
    by keeping the prices low. They are virtually a non-profit organization.
    Wall street judges Amazon and IBM on sales. Amazon is doing better
    on sales by entering new businesses while it penalizes IBM for missing
    sales mostly in hardware. IBM has always met its EPS goals albeit by
    repurchase of shares and lower tax rate in 2013( legit).
    The basic truth about high-tech is that major changes take place
    periodically and successful companies have to respond. Historically
    IBM has done it. I worked for Digital Equipment corporation and in 1980s
    it was beating IBM in hardware sales. IBM responded and Digital got
    swallowed byHP.IBM is not alone in its struggle, its competitors like HP , Oracle,Dell ( hardware server businesses) are not doing very well either.
    Going forward IBM is betting its future on Watson, Analytic, cloud, Middleware,etc. I would like to see analysts take a crack at these strategic moves. A few weeks ago IBM made presentation to analysts
    on its business strategies for growth. Haven't seen a single comment
    yet. It is always ratio analysis of cash fllow or growth or EPS which are based
    on past performance.
    Jun 11, 2014. 11:19 AM | 1 Like Like |Link to Comment