You mean lack of revenue "growth" which is what pundits on tv are pushing right now. If IBM had kept all the hardware businesses that it has sold, it would have more revenue. But back then the pundits were focusing on margins. You can't have it both ways.
The DOJ has launched a bribery probe on IBM (IBM +0.9%) regarding corruption allegations in Poland, Bangladesh, Argentina, and Ukraine, the company discloses in its Q1 10-Q. The probe comes on top of an SEC bribery case against IBM's activities in China and South Korea, which Big Blue is trying to settle. Separately, Warren Buffett says he won't be selling his IBM shares, and may buy more "from time to time." (Microsoft investigation) [View news story]
You missed the one IBM won.
"USPS, IBM Beat Kiosk Patent Infringement Suit In Fed. Circ.
Share us on:TwitterFacebookLink... Bill Donahue
Law360, New York (May 08, 2013, 3:10 PM ET) -- The Federal Circuit ruled Wednesday that IBM Corp. and the U.S. Postal Service haven't infringed a patent for automated shipping by offering customers self-service postal kiosks, affirming a lower court's findings.
The appeals court rejected arguments from Uship Intellectual Properties LLC that said a lower court judge had misconstrued a key aspect of the company's U.S. Patent Number 5,831,220, thereby leaving intact the judge's ruling that the kiosks — used by USPS and built by IBM — didn't infringe the patent."
The board authorized a $5 billion increase to IBM’s share repurchase program, boosting the company’s total authorization to $11.2 billion. IBM also said it anticipates requesting an additional increase to the buyback plan at the October board meeting. The company said it has reduced its share count by one-third since early 2000, returning more than $150 billion to shareholders via dividends and buybacks. Read more: http://fxn.ws/16SkHTu Buffett isn't selling his shares. Are you suggesting that people sell Berkshire shares? I think it is a bad idea to sell shares in a stock when the company is buying.
Big Blue Was Battered And Bruised, But Isn't Down For The Count [View article]
You should read this article which explains another reason why P/B should not be used to value companies who buy back their shares. http://seekingalpha.co...
Big Blue Was Battered And Bruised, But Isn't Down For The Count [View article]
The market doesn't know how to value IBM's patents. Many deals have been made with Google, Facebook, and other internet companies which are not made public. IBM spends around $6B annually on R&D and for a decade has been the top patent leader. Licensing of the IBM patent portfolio is routinely reported as being in excess of $1 billion annually. Other companies could learn much from the R&D to patent to revenue cycle that goes on at IBM year after year after year.
IBM surveys their clients and employees every year. Satisfaction isn't a problem overall. What you read on the internet is likely motivated by someone who has their own agenda.
I agree with you that equality of valuation does not exist in the stock market. I have yet to understand the valuation of some companies. Usually when I sell thinking this is surely the top, they go higher. The stock market seems to value companies' future prospects even when they have net losses today. Many risky stocks have outperformed this year companies like IBM and Intel that will be around long after I am gone. Over the long term, I do believe IBM is one of the best companies to buy and hold. They consistently innovate and move forward. And they make money every year while they do so. If you search on the news for IBM, you can find something new to read just about every day. It's quite exciting to be an IBM investor even when the stock is under-appreciated by the market. Recent news you may have missed: http://bit.ly/12LiNNM http://huff.to/16O6IOG http://bit.ly/12LiLWe http://bit.ly/16O6KWB
Big Blue Was Battered And Bruised, But Isn't Down For The Count [View article]
One thing your article does not address is buybacks. You do not pay taxes or trading fees on buybacks, unlike dividends. IBM reduces their share count thru buybacks which offer the shareholder a gain in investment that is not taxable until you sell your shares. IBM has beat the S&P over the last 3, 5, and 10 years as an investment. P/B is a very poor way to value technology companies because it does not know how to value patents. IBM is the largest patent holder and increases those patents every year. If someone told you you could invest in a company that was working on a computer to act like the human brain and that same company had a solar product shaped like a disc to power a building would you want to invest in that company? There are many reasons to own IBM and you have ignored several of them.
Wall Street pundits change their mind about what is important to make their case, in other words, to make their trades work and to get you to buy their stock. What is difficult to determine is if they are selling you their high-fliers for their own profit, while they buy something else that is cheap. Good for you that you didn't listen to them on IBM. I agree with you that buybacks are good for investors. I don't pay taxes on them, unlike dividends. (But you see the pundits have been pushing dividend stocks and dividend ETFs, so this doesn't go along with their case.) Dividends actually return your investment to you, as the exchange reduces the value of the stock on the ex-dividend date. Buybacks do not do this. You can see if your company is reducing their share count with the buybacks here: http://on-msn.com/14AaREI Scroll down to the balance sheets 10 year summary.
Technology Sector - Buybacks Become The New Rage [View article]
I think people have seen the power of buybacks at IBM over the past decade. Look at how IBM has outperformed the S&P.
And read about how cheap technology stocks are. If you can identify which ones are buying back the most shares this year, you may find the winners. http://bloom.bg/18f2P1z
Why You Should Avoid Big Blue This Year [View article]
It appears IBM has bottomed and is up 2.27% last week and .64% today at 10 AM EST. Mark Hulbert had an article on Marketwatch last year that you will make more money by buying stocks that dip after earnings. This is a big dip for IBM losing all the gains for the year. Go look at IBM's performance for the past 10 years, which has beat the S&P 500 and also Berkshire. Buy low for the long term. I think you should make a list of stocks to buy this summer when they dip after earnings. And IBM should be on that list. http://bit.ly/XFQpLu Click on the expanded view and look at the graph. This is with re-invested dividends and buybacks giving you a total return that is better than the S&P.
If I Could Buy Just One Stock, It Would Be This One [View article]
Morningstar gives you the return of stocks for varying time frames. http://bit.ly/14qWzqW This performance includes re-investing dividends and I don't believe the charts in this article do. You can see that at times Berkshire's performance is under the S&P 500 but it is about the same over the 10 year period if you click on the expanded view. Now look at IBM and you will see out-performance. I don't pay much attention to Morningstar ratings because some of my mutual funds outperform even without the high rating and I have had highly rated funds who did not.
A Weird Misconception About IBM [View article]
Equity Analysis Of IBM [View article]
The DOJ has launched a bribery probe on IBM (IBM +0.9%) regarding corruption allegations in Poland, Bangladesh, Argentina, and Ukraine, the company discloses in its Q1 10-Q. The probe comes on top of an SEC bribery case against IBM's activities in China and South Korea, which Big Blue is trying to settle. Separately, Warren Buffett says he won't be selling his IBM shares, and may buy more "from time to time." (Microsoft investigation) [View news story]
"USPS, IBM Beat Kiosk Patent Infringement Suit In Fed. Circ.
Share us on:TwitterFacebookLink... Bill Donahue
Law360, New York (May 08, 2013, 3:10 PM ET) -- The Federal Circuit ruled Wednesday that IBM Corp. and the U.S. Postal Service haven't infringed a patent for automated shipping by offering customers self-service postal kiosks, affirming a lower court's findings.
The appeals court rejected arguments from Uship Intellectual Properties LLC that said a lower court judge had misconstrued a key aspect of the company's U.S. Patent Number 5,831,220, thereby leaving intact the judge's ruling that the kiosks — used by USPS and built by IBM — didn't infringe the patent."
Equity Analysis Of IBM [View article]
IBM also said it anticipates requesting an additional increase to the buyback plan at the October board meeting.
The company said it has reduced its share count by one-third since early 2000, returning more than $150 billion to shareholders via dividends and buybacks.
Read more: http://fxn.ws/16SkHTu
Buffett isn't selling his shares. Are you suggesting that people sell Berkshire shares? I think it is a bad idea to sell shares in a stock when the company is buying.
Big Blue Was Battered And Bruised, But Isn't Down For The Count [View article]
http://seekingalpha.co...
Big Blue Was Battered And Bruised, But Isn't Down For The Count [View article]
A Weird Misconception About IBM [View article]
Please Do Not Invest Like This [View article]
Recent news you may have missed:
http://bit.ly/12LiNNM
http://huff.to/16O6IOG
http://bit.ly/12LiLWe
http://bit.ly/16O6KWB
Big Blue Was Battered And Bruised, But Isn't Down For The Count [View article]
P/B is a very poor way to value technology companies because it does not know how to value patents. IBM is the largest patent holder and increases those patents every year. If someone told you you could invest in a company that was working on a computer to act like the human brain and that same company had a solar product shaped like a disc to power a building would you want to invest in that company?
There are many reasons to own IBM and you have ignored several of them.
A Weird Misconception About IBM [View article]
Good for you that you didn't listen to them on IBM. I agree with you that buybacks are good for investors. I don't pay taxes on them, unlike dividends. (But you see the pundits have been pushing dividend stocks and dividend ETFs, so this doesn't go along with their case.) Dividends actually return your investment to you, as the exchange reduces the value of the stock on the ex-dividend date. Buybacks do not do this.
You can see if your company is reducing their share count with the buybacks here:
http://on-msn.com/14AaREI
Scroll down to the balance sheets 10 year summary.
Global Real Estate Stocks: Time To Get Out? [View article]
Technology Sector - Buybacks Become The New Rage [View article]
And read about how cheap technology stocks are. If you can identify which ones are buying back the most shares this year, you may find the winners.
http://bloom.bg/18f2P1z
Why You Should Avoid Big Blue This Year [View article]
http://bit.ly/XFQpLu
Click on the expanded view and look at the graph. This is with re-invested dividends and buybacks giving you a total return that is better than the S&P.
If I Could Buy Just One Stock, It Would Be This One [View article]
http://yhoo.it/12Pnx8A;range=20030401,201304...
If I Could Buy Just One Stock, It Would Be This One [View article]
http://bit.ly/14qWzqW
This performance includes re-investing dividends and I don't believe the charts in this article do. You can see that at times Berkshire's performance is under the S&P 500 but it is about the same over the 10 year period if you click on the expanded view.
Now look at IBM and you will see out-performance.
I don't pay much attention to Morningstar ratings because some of my mutual funds outperform even without the high rating and I have had highly rated funds who did not.