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International Business Machines Corporation Message Board

  • topinvestgun1 topinvestgun1 Jun 10, 2014 11:29 PM Flag

    IBM keeps selling to raise cash

    If management does not know how to turn around the down trend, find someone. It is a false hope that they can run a new business than an old business. They divest one business will be better than running it. It is incompetent blatantly. Selling business at a loss and pay hefty price for the sake of casting the smoke and mirror of positive change. Show me the number, I will see to believe it. IBM always has a seasonal bottom in July for last 5 years, see if it will hit $154 this year. Bad news after one another. Sales will decease again with chip business sales. I guess accountant does not knw what is Flip Flop Gate in computer engineering but probably does know how to flip and get flopped the number.

    Sentiment: Strong Sell

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    • IBM sells stuff that is becoming a commodity. When did they last sell scales?

      They got rid of: Rohm (well, they destroyed it), PCB, PCBA, PCs, Disk Drives, Printers (twice), PoS (Point of Sale), etc. IBM did manufacturing because they had to, not because they wanted to. Having a trophy pair of wingtips sullied by photoresist is so tacky....

      Now on to low end (x86 -- face it folks, scale out won) servers, and now chips. Whoopie. Between ARM moving up, INTC bragging on process (weak), and Open Power, well --- get into software if you can. Better yet, Biotech or a Bioinformatics, with related services. IBM is trying to do this, and a whole lot more. Maybe illegal drugs has better margins, but wingtips really do stick out in that biz, and you don't exactly get to retire.

      We'll see. They will turn it around. Will the wait be worth it? 100 years says hell yes. Then again, in 100 yrs, I am dead.

      I was in hardware, twice, with IBM. Can't say I'm too bright on that decision, but come on, if you think these folks are dumb a**es, you are delusional. They will make some good decisions, some bad, but at a 10 PE for next year, they can afford some dumb #$%$.

      Zipperheads Unite! With climate change, maybe I will go back to Endicrotch from Austin. In the long run.


    • they WILL turn this around. Unfortunately it will take some time. Its a different business now. No more hardware. Let someone else take on this expense. Software, support, disaster recovery, 'cloud" and a variety of business solutions will carry IBM on . You might not see the results (increase in stock price) in two or three years but sometime within five years you will. If you don't have the patience to wait this long, then sell if you own the stock. If you don't own the stock, we don't need any advice here.

    • Wrong reason.

    • IBM has already sold majority its real estates and tangible properties. Even today majority its office spaces are leased. So actual current IBM values are based on soft properties i.e. intellectual properties and "Trust me".

    • Your thought hit me too this morning after reading the sale of the chip unit. Ginny has desired to sell the small server business to Lenovo, now the chip unit too. Why not sell the executive staff at Armonk while you are at it. Proven management professionals with a track record of selling business units. Hey, almost any American firm loves that plus outsourcing jobs to India. You go girl?????

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