Continue reading Is IBM Headed to $200 and Beyond?

Is IBM Headed to $200 and Beyond? originally appeared on BloggingStocks on Wed, 30 Mar 2011 09:30:00 EST. Please see our terms for use of feeds.

I first wrote about International Business Machines (IBM) in February 2009 at a price of $91.51, and the stock continues to power higher -- clearing psychological resistance at $150. Now may be a good time to consider taking some profits.

However, those investors who can tolerate the risk can maintain their full position to go for a bigger gain. IBM's shares will likely trade above $180 by the end of 2011. If Big Blue approaches $195 in 2011, that would be another good to time to consider taking some profits.

Continue reading IBM: Time to Take Some Profits with Big Blue?

IBM: Time to Take Some Profits with Big Blue? originally appeared on BloggingStocks on Sun, 30 Jan 2011 14:10:00 EST. Please see our terms for use of feeds.

Continue reading IBM eliminates co-payments on employee health plans

IBM eliminates co-payments on employee health plans originally appeared on BloggingStocks on Fri, 30 Oct 2009 09:30:00 EST. Please see our terms for use of feeds.

This post is part of a series featuring bargain stocks that are worth a look now. See more Cheap Stocks.

From a contrarian perspective, International Business Machines (NYSE: IBM) might seem like an odd choice. Large-cap tech stocks are heavily populated by hedge-fund investors, and securities with this dubious distinction have been absolutely hammered this year. However, there's a certain something about IBM that distinguishes it from the pack.

For starters, there's no cult following for IBM -- and cult favorites, such as Apple (NASDAQ: AAPL) and Research In Motion Limited (NASDAQ: RIMM), have performed significantly worse than IBM this year. The market's expectations for these beloved gadget-makers are perpetually running at peak levels, which makes them more vulnerable to a shift in investor sentiment. Conversely, when was the last time you heard someone really getting excited about IBM? In this market, "boring" can be a good thing.

In its mid-October earnings report, IBM edged past analysts' consensus third-quarter profit estimates by 3 cents per share. While sales of computer hardware slipped during the quarter, that weakness was more than offset by strength in software and services revenues. Big Blue also reassured the Street that its liquidity position was "very strong," a comment that carries more weight than ever before in the current environment.

Continue reading Cheap Stocks: IBM

Cheap Stocks: IBM originally appeared on BloggingStocks on Fri, 05 Dec 2008 14:26:00 EST. Please see our terms for use of feeds.

I think IBM (NYSE: IBM), whose colleagues include Microsoft (NASDAQ: MSFT) and Hewlett-Packard (NYSE: HPQ), is a great long-term idea. Unfortunately, it might be a bad short-term idea. According to news from earlier in the week, some analysts are speculating that Big Blue may miss earnings expectations for the third quarter.

The negative catalyst? You guessed it. The terrible economic calamity that is tearing down Wall Street institutions is threatening the iconic technology concern. Not even the Cloverfield monster could do as much damage to Wall Street as what has been done by those mutant-mortgage investment vehicles. Not even close. And the theory now is that IBM may become the victim of its exposure to both customers in the financial sector and to the financing it extends.

However, if you read a rebuttal by my colleague Douglas A, McIntyre, you'll see that he doesn't buy that IBM is going to miss come the next report. He brings up some good points. In fact, he brings up probably the best point there is: IBM hasn't warned yet, and if it needed to, it would have. So the stock sold off during the week in part because of all this debate about Q3. It begs the question: Does this sell-off make IBM a buy?

Continue reading IBM: A great company, but now may not be the time to buy

IBM: A great company, but now may not be the time to buy originally appeared on BloggingStocks on Sat, 04 Oct 2008 14:10:00 EST. Please see our terms for use of feeds.

This post is one in a series on prominent company nicknames. See all 25, and share your thoughts and memories about Big Blue below in the comments.

Although there shall probably always remain unanswered speculation as to exactly how the nickname came to be, most people in business or industry today know, when you mention Big Blue, you're talking about IBM, International Business Machines Corp. (NYSE: IBM). It's a name that invokes a respect of power, much in the same way that motorists pull aside for a fire engine or stop for a moving train. As reflected in the three letter company logo, Big Blue is solid and steady, yet quite on the move.

People have attributed the company nickname to a past company dress code, when employees were required to wear white shirts and most of them wore blue suits. That theory seems a bit shallow to me. Besides, that policy was done away with in the 1990s by CEO, Lou Gerstner. Since that time, I haven't noticed anyone calling IBM, Big Business Casual.

A second theory about the company moniker follows a more logical theme. It relies on the fact that IBM uses blue for its company logo and equipment, blue being a color that denotes strength. People also naturally associate blue with largeness, similar to the sky, the oceans, and even outer space. When used in context, people just know what big company you're talking about when you use the name. For instance, if I asked my step-mom; "How are you and Big Blue doing?" she'd immediately know I was referring to one of her independent engineering contracts with IBM.

Continue reading Company nicknames: IBM, Big Blue is true blue

Company nicknames: IBM, Big Blue is true blue originally appeared on BloggingStocks on Fri, 08 Aug 2008 10:10:00 EST. Please see our terms for use of feeds.

IBM beats: A fluke or a hint of things to come? originally appeared on BloggingStocks on Mon, 14 Jan 2008 11:00:00 EST. Please see our terms for use of feeds.

The initial consensus on Wall Street regarding IBM's (NYSE: IBM) announcement Wednesday that it would eliminate another 1,570 positions is that the effort represents another prudent action in its "reorganizational tripod" of fewer positions, cheaper positions, and reinvented positions.

Further, the reorganization effort represents nothing less than wholesale transformation of the company as it confronts the multi-directional competitive winds of the globalization era. Job eliminations bring Big Blue more in line with today's continuously right-sizing, temperature-taking business environment. Wholesale shifts of jobs to lower-cost markets -- IBM's India workforce surged to 52,000 in 2006 from a scant 9,000 in 2003 -- helps IBM make up for lost time vis-a-vis lower-cost competitors. And, perhaps most significant, IBM's operational shifts -- including rethinking how it delivers services -- create a more nimble, higher-value company that can respond to clients' needs quicker and more productively. IBM's shares closed Wednesday up $1.03 to $106.93.

Further, more position "rebalancing" may be ahead: IBM, which with Wednesday's cuts has now eliminated 3,700 positions in 2007, still has about 356,000 employees, including an eye-opening 128,000 based in the United States. And as part of those cuts, many analysts in the quarters ahead see a continued trimming of global services in favor of software, where revenue is growing faster.

Continue reading IBM: From Big Blue to Nimble Blue

IBM: From Big Blue to Nimble Blue originally appeared on BloggingStocks on Thu, 31 May 2007 11:32:00 EST. Please see our terms for use of feeds.

International Business Machines Corp. (NYSE:IBM) has weathered the storm about the SEC investigation into its first-quarter earnings disclosure pretty well. Shares of Big Blue have jumped 32 percent over the last six months, keeping pace with other tech heavyweights such as Microsoft Corp. (NASDAQ:MSFT) (up 38 percent) and Hewlett-Packard Co. (NASDAQ:HPQ) (up 38 percent).

Bloomberg News reports The company said last January that it was facing a formal SEC investigation, which makes the stock performance all that more remarkable. Still, you can bet that the earnings call following the release of earnings on January 18 will be lively. I'm sure analysts will be interested to hear the company's thoughts on technology spending and any update on the investigation.

Wall Street is skeptical that IBM shares will go much higher. Their average target price is $99.67,about where the shares are trading today. Analysts are expecting the Armonk, NY-based company to have earnings of $2.19 on revenue of $25.66 billion, according to Thomson Financial.

IBM is a bellwether for both the tech sector and overall confidence in the economy. Since becoming the head of IBM in January 2003, Sam Palmisano wisely decided that IBM should focus on businesses. He got rid of the underperforming notebook computer division and acquired the consulting business of PricewaterhouseCoopers LLC. Some critics of the company have claimed -- wrongly I think -- that IBM makes its hardware and software hard to use so that customers need to hire an IBM consultant to help them out.

Also check out some other earnings reports that we're following, and let us know your thoughts on earnings expectations.

IBM stock weathers SEC investigation, at least for now originally appeared on BloggingStocks on Tue, 16 Jan 2007 11:00:00 EST. Please see our terms for use of feeds.