I really don't understand what could possibly cause IBM to gap up except for the board to replace the CEO. When the CEO personally insulted the entire IBM employee population in a corporate-wide #$%$ slap" after the last quarter, you knew things were going to be ugly going forward. IBM's core asset is their employees... most of which are down in the trenches (just trying to support their low and middle class families across the world) and could easily leave and make 45% more money some where else. It's the incompetent executive team which must hold on to their IBM job at all costs, and sacrifice the lives of others less fortunate to do so.
IBM will earn approx. $17 shr this year...that puts the P.E under 11, an almost historic low for IBM. Revenue growth aside, this wont last. Shorts are contracting the spring, eventually (months?) it will expand again. I'm waiting news of sale of server division to spark the next run. It could come at any time..