IBM's business model. Buying out old companies and stripping them of there assets.
It's kinda like the bums going into the foreclosed homes and stripping out the copper wiring and copper plumbing ya know? Ripping off the aluminum siding to sell and stuff.
Or the guys out there sawing off catalytic converters from other peoples SUV's to get at the platinum and sell it at the scrap yard.
Yeah... put a pin stripped suit on these guys and it's about the same dam thing.
You're not creating anything new, just stripping out assets from old stuff lying around and calling it growth.
Executive Parasites living off a taxpayer host
What are you creating? What? This doesn't take a genius or a university degree to figure out.
Seriously look at this :
[...].. IBM continues to proceed with its strategy of accretive acquisitions that can be easily integrated into its current business. IBM plans to spend approximately $20.0 billion in acquisitions over the next 5 years.
IBM acquired approximately 108 companies since 2000 for a total of about $22.0 billion, all of which have been profitable. The company made 26 strategic acquisitions to strengthen its portfolio. Since 2005, IBM has invested $10.0 billion, or $8.5 billion net, in 14 strategic acquisitions to build its business analytics capabilities. Since 2006, IBM has acquired 11 companies, including BigFix in the security related field.
Oooo accretive (sic) - ohhhh strategic. not just plain acquisition mind you I'm so impressed aren't you?
That sounds so valuable eh.
I know, I know, All those big numbers look so impressive and you're all gonna be rich right?
Why they're gonna spend another $20 billion dollars over the next five years doing the exact same thing it works so well.
HA - that's what the investors thought back in 2000. We're gonna be rich. Here they all are ten years later after all these acquisitions... oops I mean strategic acquisitions and accretive (sic) acquisitions - and the $20 billion dollars spent and all the PR's touting success, profit, and growth and other virtuous things and what does the shareholders have to show for it
Ten years ago IBM traded in the low 130's - 108 companies and $22 billion dollars later and you're at what? $120/share?
What are you guys on - Kool aid? ..lol
Now that the outcome is just about in, there is very good reason to return to the thread, which by now most here had forgotten. I do believe that there is something valuable to learn from it in retrospect.
esadmfs....keep up the good work, your stated "facts" apparently struck a cord of the true-bluers given their defensive attack on you. I'll only add that organic growth is near zero and morale is pathetic. Average raise for the few that got one was 1.3%
LOL! You have the balls to post this long winded speech about IBMs Business Strategy when you have ZERO analytical skills. Did you know that IBM will spend nearly $6B on Product Development this year?
Do you know what Tivoli is? How about Rational? Did IBM strip them of their assets?
And what is wrong with growth through acquisition, when those acquisitions are software companies that can generate double digit accretive ROI?
I'd ask you if you ever went to college, but like your posts and your Yahoo ID information, your answer would ultimatley be a lie. I don't agree with a lot of what IBM is doing these days, but your posts aren't even close to having even a nominal undestanding of IBMs business.
You have a choice. You can study IBM for what it really is, or you can continue to post nonsense and be viewed as the joke of this message board. Your call.
But Tivoli's market share is essentially zero. In fact IBM has to count its own internal use to show any sales.
And Rational is an even bigger joke. IBM paid more than $2billion for the company 7 years ago and the most important product was a cross debugger for the PowerPC architecture. Then IBM lost its only PowerPC customer - Apple.
They're acquiring companies so they can show growth and they work hard to disguise the numbers so that analysts can't tell. But the analysts can tell, and that's why the PE keeps falling. The company has not grown its top line revenue in 7 quarters. That's a disaster.
Ha, their growth is not YOUR growth. IBM's ROI is not the shareholders ROI.
Fact is IBM traded as high as $134 ten years ago and ten years later - $20 billion dollars and over 100 companies later the shareholders are at $124.
What else do you need to know really?
IBM has been flat for 10 years...yep. Many others, including above, have lost 50% or more. What is your point?
Let me guess...use your pathetic hindsight to recognize a 10 year period that puts any given stock in the worst light... You deserved to be RA'd, you douchebag ! Grind your axe somewhere else.
a lot of women have been flat for even longer , but they
are damned interesting and dependable ... it's all where
you place your values ...
a lot of folks have made a lot of money with IBM stock in
every 10 year period that you can identify .... they don't
brag about it here , so you'll never know .. eh ?
YEAH ... like INTC and MSFT .. where the hell have THEY been
the past 10 years ???? lol ...
like any other US large cap , much of the value is locked up ..
if IBM were ever to be broken up , the shareholders would
have more money than they know what to do with ...
it's just the way that things work, and the reason why many
investors shun the large caps ...
to each his/her own ... you have to use what works for
you , including how you sleep at night .. later ... garce
So your theory is the next ten years will be like the last ten years?
What about the ten years before the last ten years? Or ten years before that?
All the same?
Don't be an idiot. Buy if you like, sell short if you like, but don't be an idiot.