Wednesday, July 15, 2015

IBM: Tentative Buy


Summary

  • IBM is set to report another quarter of declining results.
  • The stock remains cheap and is supported by stock buybacks that haven't been effective.
  • IBM is generally cheap and pays a solid 3.2% dividend for investors willing to wait out the rebound.
   When last writing about the investment potential of IBM (NYSE:IBM), I wrote two articles (here, here) attempting to get investors to load up on the stock on the dip to $150 due to strong yields. At the time, the stock was down considerably and trading at multi-year lows. The investment community had become exceptionally bearish on IBM despite a strong stock buyback program and the profits and cash flow to support a higher valuation.

 Read the full article on Seeking Alpha.


 Disclosure: Long IBM. Please read the disclaimer page for more details.

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