IBM
International Business Machines Corporation
TMT
02/03/2014
Presented
| Date | 01/29/2014 |
| Price | $176.85 |
| Market Cap | $192.00B |
| Ent Value | $220.82B |
| P/E Ratio | 13.37x |
| Book Value | $11.98 |
| Div Yield | 2.8% |
| Shares O/S | 1,085.85M |
| Ave Daily Vol | 5,330,000 |
| Short Int | 2.58% |
Current
| Price | $232.96 |
| Market Cap | $214.59B |
| International Business Machines Corporation provides information technology (IT) products and services worldwide. The company’s Global Technology Services segment provides IT infrastructure and business process services, including outsourcing, process, integrated technology, and technology support. Its Global Business Services segment offers consulting solutions for strategy and transformation, application innovation, enterprise applications, and smarter analytics; and application management, maintenance, and support services. The company’s Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, performance management business analytics and intelligence, and data analytics; Tivoli software for cloud and datacenter management, enterprise endpoint and mobile device management, asset and facilities management, storage management, and security systems; Lotus Software to connect people and processes for communication; rational software to support software development in IT and embedded systems; and operating systems software. Its Systems and Technology segment provides computing power and storage solutions; and semiconductor technology, products, and packaging solutions. The company’s Global Financing segment provides lease and loan financing to end users; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services for equipment. The company has a strategic alliance with Kutxabank; a strategic partnership with SYNNEX Corporation; and strategic agreement with Banco Mare Nostrum. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. The company was founded in 1910 and is headquartered in Armonk, New York. |
Highlights
The presenter is short shares of IBM for two primary reasons. First, he believes the company’s apparent inability to adapt to the industry-wide shift to cloud technologies may finally be catching up to it. Second, the company’s fundamentals appear to be deteriorating, and it is his opinion that some earnings quality issues have emerged over recent quarters. With shares of IBM trading at ~$177, the presenter believes shareholders face at least 15-20% downside risk over the near-term.
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