The company's stock price have taken a beating due to limited revenue growth in past 2 quarters, but I believe the lack of sales growth is due to the company shedding some high value, low margin hardware business.
Wall street is not paying much attention to this share, and its forward earning is around 10x PE. Paying out a decent 2.16% dividend.
I believe the market is underestimating the innovation coming out of IBM because they can't understand it - just take a look at Watson and do your best to guesstimate the potential, my gut feeling is that this product will be HUGE and more than enough to offset any earning decline in its traditional hardware business.
It's a top investment in Berkshire Hathaway and Mr. Buffett himself praised IBM after its share slump. I think if your portfolio include shares in the US, you should look at adding some to your position.
I will accumulate gradually below USD 180, the next earning release may not do the share price much good but I think this is a solid blue chip company for my portfolio for 5-10 years.
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