With IBM planning to announce 2nd quarter results this coming Monday the stock prices seems to indicate favorable numbers are expected. I think the key will be indications that revenue has flattened or started to increase. In any event the current strategy seems to be working. Many years ago Tom Watson Sr. stated that IBM's business was "INFORMATION", not hardware. The ship isn.t changing direction, only refining its details.
This SELL OFF puts the stock back to the level it was at one month ago. Its recovery is already in process. I had expected a harder initial hit. .The turn around is in process but I would have expected that the revenue loss would have been contained by now. .
Sooner or latter the strategy that IBM has taken to increase revenue will show positive results. The current price earnings ratio will increase dramatically to the industry averages putting the price of a stock well over $210. For the day traders this doesn't matter but for the long term investor that's what keeps them in the stock. The dividend isn't bad either.