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  • Market Clues From Berkshire's Balance Sheet [View article]
    Thank you. Very interesting analysis.
    Nov 20 05:35 PM | Likes Like |Link to Comment
  • Will Tesla Design New Vehicles In Time To Prevent More Devastating Battery Fires? [View article]
    Patent News - you had me at 'Battery fires'.
    Oct 6 10:39 PM | 1 Like Like |Link to Comment
  • Red-Hot Novadaq Shows There's Green In Being Green [View article]
    I Like your analysis. I followed Prem Watsa into this one at $10. I am glad I did.
    Jun 14 12:43 PM | Likes Like |Link to Comment
  • IBM: A Disaster In The Making [View article]
    IBM's demise was predicted when distributed computing emerged. IBM adapted and survived. They will survive this too. Look at the number of IBM software products being offered in a SaaS model. That number will go up. I think IBM will 1) Buy a few cloud companies(they have already done some) 2) IBM will move into public cloud on-boarding services like Cloud Sherpa (may be buyout cloud sherpa?).
    Apr 23 09:33 AM | 5 Likes Like |Link to Comment
  • IBM: Despite Shenanigans, Big Blue's Still Got It [View article]
    "The management of huge cash-rich companies (such as IBM) frequently go on acquiring sprees because they can't grow fast enough organically to meet internal goals, so they start spending cash to buy other companies which makes earnings grow, albeit at a less than optimal rate of efficiency. IBM spent $1.8 billion on five acquisitions in 2011, $6.5 billion on 17 acquisitions in 2010, and $1.5 billion on six acquisitions in 2009. If questioned, management will explain these were "strategic" acquisitions that provide unique "synergies" enabling IBM to efficaciously increase profitability. I don't believe it. These acquisitions are the desperate work of a cash-rich management team that cannot generate enough internal growth, so they grow the business inorganically, and empirical evidence (for example, see previously cited research) shows acquisitions are a sign of weakness. IBM will point to the high profit margins of the software companies they acquire, and management will also proclaim these acquisitions allow them to grow tangentially-related services business. I know better. While I believe IBM will continue to be profitable for a very long time, I believe the acquisitions and the product (hardware and software) business in general are real weaknesses of the company."

    "I know better"? No you dont. Look at IBM acquisition of Cognos ( now IBM's Business Analytics division). BA is growing at 16% and on top of it drives revenue for Global services (9000 consultants in services devoted to Business analytics in GBS). Source: IBM annual report 2011.

    Yes. IBM grows through acquisitions. They are much more smarter about it than any of their competitors. Like HP buying autonomy or Oracle buying Sun.
    Jan 16 09:47 AM | 3 Likes Like |Link to Comment