IBM

International Business Machines Corp

TMT, Consumer


Presented:04/25/2017
Price:$160.39
Cap:$152.02B
Current Price:$232.96
Cap:$214.59B

Presented

Date04/25/2017
Price$160.39
Market Cap$152.02B
Ent Value$197.26B
P/E Ratio13.19x
Book Value$19.29
Div Yield3.27%
Shares O/S947.80M
Ave Daily Vol3,895,377
Short Int2.18%

Current

Price$232.96
Market Cap$214.59B
International Business Machines Corp. is an information technology company, which provides integrated solutions that leverage information technology and knowledge of business processes. It operates through the following segments: Global Technology Services, Global Business Services, Software, Systems Hardware, Global Financing, and Other. The Global Technology Services segment provides information technology infrastructure services ranging from strategic outsourcing, integrated technology services, cloud, and technology support services or the maintenance services. The Global Business Services segment delivers a range of solutions including consulting, and systems integration, application management services, and global process services. The Software segment consists primarily of middleware and operating systems software which supports information management, Tivoli, workforce solutions, and others. The Systems Hardware segment refers to infrastructure technologies such as server, and storage. The Global Financing segment relates to the acquisition of information technology systems, software and services by providing financing solutions such as client financing, commercial financing, and remanufacturing and remarketing. The company was founded by Charles Ranlett Flint and Thomas J. Watson Sr. on June 16, 1911 and is headquartered in Armonk, NY.

Publicly traded companies mentioned herein: International Business Machines Corp (IBM)

Highlights

The presenter is short shares of IBM (IBM), reasoning that the margin degradation witnessed over the recent quarters is not indicative of a cloud transition as the bull thesis purports, but rather of a general decline in revenue and earnings potential for the company. By his model, IBM is set to earn $11 next year. With an 11x multiple, IBM shares would trade at $120.

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Idea Discussion

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