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  • IBM: Should Big Blue Be Singing The Blues? [View article]
    The market is not factoring in their moat in mainframes, middleware, return on equity, yield, credit rating, patents, brand, or much of anything else.
    Oct 13, 2015. 03:01 PM | 1 Like Like |Link to Comment
  • For Dividend-Paying Microsoft, Mr. Market Should Look At Cash Flows [View article]
    Change in cash on bottom line shows they are not keeping up. And they are borrowing money to pay their dividends and buy back their stock. Wall Street has punished many companies for doing this. I am not buying into your bullishness on Microsoft when they are doing exactly the same thing and are at a higher valuation than other large tech companies.
    Oct 13, 2015. 02:07 PM | Likes Like |Link to Comment
  • IBM: Should Big Blue Be Singing The Blues? [View article]
    To the author, about the title of this article, programmed bots only read titles...They are not you may want to decide in the future if your title sounds positive or negative for IBM's stock price. The market is not run by people with knowledge or a brain or else we wouldn't be subject to an imaginary futures/e-minis number or lines on a chart. If you are long, write great titles for the media. That is all the journalists understand. They watch the bots to see how the stock responds and then pile on for the traders to make money.
    Oct 13, 2015. 01:59 PM | 1 Like Like |Link to Comment
  • IBM: Should Big Blue Be Singing The Blues? [View article]
    From the Proxy statement in the annual report:
    " Under the IBM Board Corporate Governance Guidelines, within five years of initial election to the Board, nonmanagement directors are expected to have stock-based holdings in IBM equal in value to five times the annual retainer initially payable to such director. "
    From IBM's website under executive compensation: "The Chairman and CEO and Senior Executives are all required to own IBM shares or equivalents worth three times their individual total target cash compensation within five years of hire or promotion. Unlike the majority of the Fortune 100 companies who establish ownership guidelines using a multiple of only base salary, IBM uses a multiple of base salary plus target annual incentive. This ensures that meaningful ownership levels are accumulated based on each executive’s annual cash compensation opportunity. As of December 31, 2014, as a group, the Chairman and CEO and Senior Executives owned approximately 1.0 million shares or equivalents valued at over $164 million; in fact, as of that date, this group held, on average, almost twice the amount of IBM shares or equivalents that the Company requires."

    Where are you getting your information?

    Also in the annual report is an explanation of director shares held in a program called DCEAP: "Promised Fee Shares earned and accrued under the IBM Deferred Compensation and Equity Award Plan (DCEAP) as of December 31,
    2014, including dividend equivalents credited with respect to such shares. Upon a director’s retirement, these shares are payable in cash
    or stock at the director’s choice (see 2014 Director Compensation Narrative for additional information)."
    This program may not be reported to Nasdaq or what you follow.
    Oct 13, 2015. 01:32 PM | 2 Likes Like |Link to Comment
  • IBM: Should Big Blue Be Singing The Blues? [View article]
    What has happened to IBM's stock price is from a misunderstanding by analysts on how to value companies based on anything other than revenue growth each quarter. If a company grows larger without making more money or any money, they run the risk of failing, especially during a downturn. IBM has moved their entire company into higher margin opportunities and has divested those who didn't meet their business objectives.
    All other IT companies are still competing for devices used by consumers and hoping people will download their products or pay a higher subscription rate for SAAS. IBM will be a backbone for the IT industry in the next century as they have been in the past. Mainframes will run either in enterprise data centers or in cloud data centers because that is where transactions are processed best, most secure, and at the lowest transaction cost.
    It may take years for IBM to be appreciated by Wall Street for the many new products they offer, but if you simply search on IBM each day, you will see the companies that are hitching their business to IBM's future. Companies don't do this if they are not convinced. Business decisions are not made on a whim of Wall Street or internet bloggers who are short the stock. When you chase the latest hot stock from Cramer or FastMoney, you may make money in the short term, but that is a trade and not an investment. One of the best investments today is in IBM stock. Run any screen you choose on fundamentals and you will see.
    I have seen nothing close to the power of Watson from anyone else except for the imagination of the movie industry. IBM's cloud and development tools give access to Watson. What young person would not want to learn that?
    Here is a recent example I found today:
    Woodside taps IBM's supercomputer to bolster operations
    I find someone becoming an IBM cloud customer or using IBM services every day I search, including the IBM service deal today with Etihad Airways and their 7 partner airlines.
    As far as hardware that IBM is making, IBM can still beat Intel and HP on price performance. See how the Power S812LC stacks up.
    Oct 13, 2015. 12:50 PM | 4 Likes Like |Link to Comment
  • IBM: Should Big Blue Be Singing The Blues? [View article]
    A big problem with Seeking Alpha is posters mislead investors with false information. If there were more people like yourself that would correct these errors, this website would be worth a lot more than today. Please continue your postings.
    Oct 13, 2015. 12:13 PM | 2 Likes Like |Link to Comment
  • IBM: Should Big Blue Be Singing The Blues? [View article]
    So what hardware are you using to run IBM's software and using their services? As far as I know, you will be responsible for determining whether your future problems are from a vendor's hardware, IBM software, or from add-on customization. You will no longer call an IBM 1-800 when your computer is broken or slow or producing error logs.
    Oct 13, 2015. 12:08 PM | 2 Likes Like |Link to Comment
  • Activist Investing Daily: Elliott And EMC [View article]
    I don't know if Elliot's management is happy, but as a small shareholder of EMC, I am not happy. EMC will be worth more after they report 4th quarter results. Selling a tech company in October is a bad idea for shareholders. I'm sure Michael Dell is very happy. Once again the top 1% gets the advantages of our system.
    Clearly anyone could see the problem with the valuation.
    EMC has enough cash to pay off their debt.
    Their Enterprise Value/EBITDA (ttm) is 9.84
    Their Enterprise Value/Revenue (ttm) is 2.16
    They own 80% of VMW.
    Now look at VMW:
    A lot more expensive and a lot more debt.
    So anyone can see that the market has gotten completely out of whack and Michael Dell is getting an expensive revenue-growth company for cheap simply by buying the parent. This is what happens when the market does not understand valuation which seems to be a common thing these days.
    Oct 12, 2015. 02:04 PM | 4 Likes Like |Link to Comment
  • For Dividend-Paying Microsoft, Mr. Market Should Look At Cash Flows [View article]
    Better see how PCs and Windows phones are going to do before you buy MSFT.
    Sure their operating cash flow looks good. But look at how much they spent the last 4 quarters of that.
    Oct 12, 2015. 01:35 PM | Likes Like |Link to Comment
  • Should IBM Spin-Off Watson? [View article]
    According to Wikipedia, IBM has done many spinoffs.
    But from what I can tell, they don't spinoff something that is a "strategic imperative". It would be foolish to let Wall Street get a hold of Watson and and control one of the company's strategic imperatives. And it would mean that hedge funds could actually end up controlling Watson or even another company could acquire Watson. So in my opinion shareholders are never going to vote for that.
    Oct 12, 2015. 01:21 PM | 2 Likes Like |Link to Comment
  • Dell provides the EMC deal details [View news story]
    I am really getting tired of people taking my ideas private and beginning to feel like as a value investor I am getting fleeced. Think of how much more EMC would be worth after the 4th quarter to shareholders. Of course the first 2 quarters didn't look that great. That's the way all of large tech is. Companies spend their IT budgets in the last half. The 4th quarter is the big one. Why sell the company before the 4 qtr is reported?
    Oct 12, 2015. 12:07 PM | 1 Like Like |Link to Comment
  • It's NOT Intel Inside Microsoft's New Windows 10 Lumia Phones [View article]
    Microsoft is not doing well with smart phones. Go read their last earnings report. People are not buying PCs either. And Microsoft is giving Windows 10 to users for free. I don't know why you think anyone cares about Microsoft phones. People buy iPhones or Android phones.
    Sep 30, 2015. 09:04 PM | Likes Like |Link to Comment
  • 5 Barron's-Ranked Financial Advisors: Where To Invest In The 4th Quarter Of 2015 [View article]
    I have been thinking that real estate may come down a little when rates go higher, except for new housing.
    Sep 30, 2015. 02:55 PM | 1 Like Like |Link to Comment
  • New Chevy Volt looks to break away from plug-in hybrid pack [View news story]
    Big tax incentives to buy Volt. Click on the link to the article.
    "In California, the car could be as little as $24,995 with incentives." Down from $33K+.
    The second-generation 2016 Volt has been rebuilt from the wheels up and will ship now to 11 states, including Calif.
    The 2017 Volt will ship early in 2016.
    Sep 30, 2015. 11:27 AM | 1 Like Like |Link to Comment
  • The 10 Best Income Buys In The 10 Income Sectors [View article]
    Another cheap income stock is GM. Forward dividend yield is 4.9% with a payout ratio of 46%. Below the IPO price now. Hitting the 50 dma today. Wait for it to be down in the afternoon and buy in lots when it is down. Institutions have gone up to being invested in 71% of the stock (according to Yahoo finance) or 76% of the stock (according to Finviz). Get what's left. Maybe it will be down tomorrow.
    Sep 30, 2015. 10:59 AM | 1 Like Like |Link to Comment