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International Business Machines Corporation Message Board

  • ib_millionaire ib_millionaire Jun 29, 2013 4:23 PM Flag

    And now a message from one of my heros - David Stockman (The Great Deformation)

    BIG BLUE: STOCK BUYBACK CONTRAPTION ON STEROIDS
    IBM’s huge buyback program shows financial engineering helped by the Fed’s “”bubble”” finance regime enables companies to literally “”BUY”” themselves a higher stock price.
    During the 5 years ending in fiscal 2011, the company spent a staggering 67 BILLION repurchasing its own shares, a figure that was equal to 100 percent of its NET income.
    The buy-back program brought approximately 550 million or 36% of the 1.5.billion shares outstanding into its treasury. Nearly 40% of these shares reentered the float, mainly to
    refresh the management stock option kitty. Former CEO Sam Palmisano cashed out 110 million of stock options a few weeks after his retirement party.
    The problem remains that IBM’s earnings – like nearly all big cap global companies – could not be flattered permanently by the Fed’s BUBBLE finance.
    And now the weakening Euro will take its toll on the company’s reported results. With nearly two_thirds of its sales outside the United States, the company’s sales are now falling in dollar terms and will likely continue. During the last 5 years IBM spent less on capital investment than its depreciation and amortization charges, and also shrank its constant dollar spending for R/D by nearly 2% annually. Neither of these trends is compatible with staying on top of the fiercely competitive tech industry.
    I don't own IBM stock anymore nor have any Short interest - its just a little info for you to ponder - I don’t care what you do.

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    • Hilarious!! Consider the source of this nonsense.
      David Stockman's record as an investor is dismal and most of his major projects as a private business man went bankrupt. I'm not surprised he is bearish on IBM and everything else having to do with American business.
      In a March 2012 interview, David Stockman says we're facing a financial crisis, and he holds no stocks, only short-term Treasurys, saying, "I'm just in short-term, yeah. Call it cash. I have some gold. I'm not going to take any risk."

      Ouch!!! He missed one of the greatest bull runs in US history and has...wait for it.... GOLD?? = double ouch.

      "In 2010, Stockman agreed to pay $7.2 million to settle a lawsuit with the Securities and Exchange Commission that claimed he had misled investors as chief executive officer of Collins & Aikman Corp., a maker of auto parts. "

      This guy is a piece of work who throws around numbers and gloom and doom stories every time he wants to sell a book. If this guy is your hero, my condolences for your losses.

    • "During the last 5 years IBM spent less on capital investment than its depreciation and amortization charges, and also shrank its constant dollar spending for R/D by nearly 2% annually. Neither of these trends is compatible with staying on top of the fiercely competitive tech industry."

      During the last 3 years from 2012 IBM spent $6.3 bil, $6.258, $6.026 bil and the % of revenue has been 6.03%, 5.85%, 6.03%. IBM has also filed the most patents for the last 3 years.

      The above quote suggests that IBM has reduced its R&D by 10% during the last 5 years and that it is losing ground because it doesn't do enough R&D.

      Mostly, its people who sold the stock in 2011 at $170 who post this kind of baloney.

      Not to worry, the truth detector is on the job.

      • 1 Reply to yield_of_my_dreams
      • Truth-detector ??
        You are a JOKE!
        How is that buy and hold working for you??
        Yea I sold at 170. And a few times at 120 and last year at 198.
        Of course I bought at 180 the day before Jan eanings and made a quick 10%.
        I wont be buying the day be_FORE earnings this time..
        I will be looking FORE you after earnings next month TRUTHY!!
        My guess you will be hiding.
        Anyone LONG and STRONG in these markets is an IDIOT!
        David Stockman rules!
        See you after EARNINGS FOOL!
        .

 
IBM
161.79+0.54(+0.33%)Oct 22 4:01 PMEDT

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