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International Business Machines Corporation Message Board

  • arbourplace arbourplace Apr 23, 2013 7:46 AM Flag

    Big Tech Is Struggling With Old Age. Great Fortune Article.

    Pretty much sums it up. IBM is old and tired.

    Sentiment: Strong Sell

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    • I'm old and tired. I do 100lb reps 12 times. Swim sevarl laps and do 25 puchups. I'm old and tired. IBM is old and tired. But still kicking and showing profits yoy. WE collect dividends here and watch as the stock progresses up and up. Why don't you join us for the ride? Even if you short the stock you will be a contributor to our overall long term profits.

    • I hear your opinion but what specifically is your reasoning? So,...are you short? sold naked calls?....bought puts? There are certainly better bets than the downside of IBM. Me? I've sold the MAY-180 puts naked. If for no other reason, there will be buyers coming in (right or wrong) to support that price for at least a month til I'm out of here. IBM has long and deep service contracts that should prevent any precipitous decline.

    • What exactly do you mean? Are you claiming that companies like IBM, Oracle, Microsoft, and SAP cannot adapt to evolving technologies and business realities? Perhaps you think these companies will lose in the arena of social, mobile, and cloud computing to "new age" companies like Google, Amazon, or even SalesForce?

      Let's consider a few things in this context. IBM provides IAAS, PAAS, and, increasingly, SAAS applications. IBM can basically give you the entire cloud stack, from the ground up. Nobody but nobody is better when it comes to data center management. IBM also spends $6 billion a year on R&D, utilizing world class scientists & technologists. Add in over $100 billion in revenue and $15 billion profit annually...I dare say other companies wish they were similarly "struggling".

      IBM certainly faces challenges. They need to get more bottom-up driven internally, as middle managers have too much influence & power. They need a cultural makeover to attract & retain young talent, which is often essential for product management to provide technologies with "a modern face". But make no mistake about it: IBM has legions of world class scientists & software engineers that can be counted upon to produce & deliver seminal technology.

      Something tells me IBM, Oracle, Miscrosoft, and SAP will stand the test of opposed to SalesForce, LinkedIn, GroupOn, even Facebook. The former have channel, critical applications, and have stood the test of time, adapting to change, pushing change...and actually providing technologies underpinning change.

      IBM has been around 100 years. Even in the past 5 years, the stock has done fantastically well. I bet they will last anther 100.

      • 2 Replies to banmate7
      • banmate7, totally agree with your post, especially shedding a lot of the useless middle management "project management" types who do nothing but make presentations and get status from others. IBM used to form small technical groups and let them tackle big problems on their own, and those are wildly successful and the perfect thing to attract young talent. I was lucky enough to be part of those teams twice and the work morale and rewards were fantastic. IBM could do this and shed even more salary currently going to the people who do nothing but push papers and talk big.

      • One of the best posts I have seen on this forum in some time. Definitely agree with the "bottom-up driven internally" comment. There are definitely concerns with any company, but IBM has a lot of positives that can not be overlooked.

        Sentiment: Buy

    • Good thing IBM doesn't consider itself old and tired. But if you want to base your investing advice on that, feel free, in the meantime I'll just keep accumulating on these dips.

    • You make me old and tired. Please find a job or do some honey dos. Really, haven't you got anything better to do.

      Sentiment: Strong Buy

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