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  • IBM's Currency Problems May Be Over [View article]
    Software is IBM's most profitable business. They gave low guidance from a range for 3rd quarter. So if they beat the software guidance, then they will likely beat gaap earnings.
    From the call:
    "With regard to software, there are some consistent themes here that we've been observing now for a while. We do still have in our overall growth rate a headwind from the operating system element of our business. That was about a point.

    Additionally, what we saw in the BRIC countries' impact on IBM, and I mentioned this in my prepared remarks, even though the BRICs are relatively small, only about 7% of our revenue, they had a 2-point impact on the growth. That same phenomenon translated into key branded middleware. So, ex the BRICs our key branded middleware segment, software segment would have had 2 points of growth, as well."

    IBM's stock is certainly way down below 7%.

    Another good point from the CFO
    "I think the consistency here is that we have two phenomenon. Within our top 250 clients, and we've talked about the substantial both investment and commitment those clients have made to the software platform, within that client base we continue to offer and they continue to utilize flexibility so that they can fully deploy our middleware across their environments. And that phenomenon hasn't changed.

    Outside of that top 250 clients, we do see growth. We've been growing there and we continue to grow. So, it really is this flexibility that we're providing to our clients, which we still think for the long term is the right thing to do as they commit to the platform."

    IBM is growing outside of the top largest clients. This will continue to support the cash flow and earnings, as the large clients who are first essentially pay for the product cycle. And last quarter was a very strong signings quarter. Revenue in strategic imperatives, those that address the market trends in data, cloud and engagement, is again up more than 30% in the second quarter and so up over 30% for the first half.

    IBM's 41 cloud data centers on five continents didn't exist in 2010 so clearly the stock is under-valued.
    Aug 26, 2015. 02:03 PM | 1 Like Like |Link to Comment
  • IBM's Currency Problems May Be Over [View article]
    Whatever the worth of the BRICs to IBM, it has obviously been taken out of the stock's price. The last time IBM traded this cheap was 2010. And since then they have bought many other companies, reduced their share count, raised their dividend, become the number 2 or 3 cloud provider, received thousands of patents, and had many new products come to market in both hardware and software. The one share of stock is certainly a better value today than it was in 2010 with the old x86.
    Traders seem to like India. IBM has at least 12% of the software market in India.
    In the last quarter, IBM said they hired over 2,000 people in its mobility practices and shifted almost 1,000 people to analytics projects. This should begin to pay off.
    Aug 26, 2015. 01:21 PM | 4 Likes Like |Link to Comment
  • Why Schlumberger's Weakness Is An Opportunity, In 4 Charts [View article]
    Earnings are to be accretive in first year after closing the purchases of CAM. Have you seen any earnings estimate or upgrades?
    From Credit Suisse 7/17/2015 before acquisition: P/E valuation (22.5x [80th percentile of 5Y historical valuation] leads to their price target. "Our price target moves to $89 based on a 50/50 blend of our $90 DCF value and our $88 P/E valuation (22.5x [80th percentile of 5Y historical valuation] 2016 EPS, discounted back)."
    Aug 26, 2015. 10:41 AM | 2 Likes Like |Link to Comment
  • Daily Round Up 8/25/15: APD, AYR, KS, OPK [View article]
    Van Kralingen who is from South Africa has only been with IBM since 2004, coming from Deloitte, so maybe she is on her way out the door. CEO Rometty has over 163,000 shares. At least 18 executives at IBM are accumulating shares.
    Aug 26, 2015. 10:04 AM | Likes Like |Link to Comment
  • Schlumberger to acquire Cameron for $14.8B [View news story]
    You should buy SLB on this dip. The acquirer always dips and then goes up the next day.
    Aug 26, 2015. 09:56 AM | Likes Like |Link to Comment
  • Now's The REIT Time To Go Shopping For SWANs [View article]
    Stifel upgraded HTA to a buy with 16% upside.
    Aug 26, 2015. 09:52 AM | 1 Like Like |Link to Comment
  • Futures point to big opening bounce [View news story]
    The Dow closed yesterday lower than last October. I just can't see it getting much cheaper.
    Aug 26, 2015. 09:23 AM | 1 Like Like |Link to Comment
  • I Own Southern Company And AGL Resources - Now What Do I Do? [View article]
    Mergers always seem to lose me money after they happen. 2 dividends become one. Cost basis requires updating. Then I can see my loss. So be diligent about taking your gains.
    Aug 26, 2015. 09:15 AM | 1 Like Like |Link to Comment
  • Everyone Is Starting To Get It (Finally) [View article]
    GM stock is down 29%. So China has been removed from the price of the stock.
    Aug 25, 2015. 04:58 PM | 4 Likes Like |Link to Comment
  • Everyone Is Starting To Get It (Finally) [View article]
    Volkswagen generates more than half of its profit in China. Why don't you include them?
    Aug 25, 2015. 04:54 PM | 2 Likes Like |Link to Comment
  • Everyone Is Starting To Get It (Finally) [View article]
    Last month GM said it will spend $5 billion over the next decade to develop a new family of Chevrolet vehicles aimed at emerging markets such as China, India, Brazil and Mexico. Those new cars and their engines will be developed through an expanded partnership between GM and Shanghai Automobile Industry Corp. (SAIC).

    GM president Dan Ammann said there are no plans to export these vehicles to mature markets such as the U.S.

    So why would anyone buy EEM or some other contrived emerging market investment vehicle and not buy GM stock?
    Aug 25, 2015. 04:47 PM | Likes Like |Link to Comment
  • Everyone Is Starting To Get It (Finally) [View article]
    If China is so bad, why are all the automakers rushing to build factories there? Even Ford, VW, and Toyota. GM has a head start and shouldn't be punished for being first. All automakers must build vehicles in China in order to sell them there or face stiff tariffs on their exports.
    Aug 25, 2015. 04:44 PM | 1 Like Like |Link to Comment
  • Goldman sees rebound ahead, lists 25 most oversold stocks [View news story]
    Goldman is no better than your own ideas. I own some of their stock picks they made at the beginning of the year, and they are down just as much if not more than the rest. I'm pretty sure Corning was their idea or Credit Suisse's idea. Look how far down Corning is. Until the machines start buying the market, it isn't going up. Goldman and the rest of the big banks have turned our stock market into a slot machine.
    Aug 25, 2015. 04:38 PM | 1 Like Like |Link to Comment
  • Everyone Is Starting To Get It (Finally) [View article]
    Love those new GM ads.
    I think GM stock has gone down enough to count for all of China. They are a global company.
    GM's forward P/E is 5. Now do you know why people take their companies private? The stock market is inept at valuation.
    Aug 25, 2015. 03:40 PM | 1 Like Like |Link to Comment
  • Is The Heat Of This Correction Too Much? Get Out Of The Kitchen Or Start Nibbling Now [View article]
    You can get some amazing prices on ETFs unless they are just not open yet. I am just going to start putting in low-ball limit orders. It's time to buy stocks in the USA that yield more than 3% especially when they are down 15% from their high.
    Aug 24, 2015. 09:48 AM | 1 Like Like |Link to Comment