Monday, March 5, 2012

IBM's Big Move

IBM has consistently outperformed every other company in its sector over the past 10 years and it has caused, at least to this blogger, much confusion due to its stagnated stock price and failure to break into the kind of percentage moves seen by so many other large cap tech stocks, particularly AAPL and RIMM. However, now that RIMM is seeing the demise of their blackberry and its popularity wane as the iPhone and more popular products take over its simple and unimaginative platform, and AAPL is skyrocketing, I'm glad that IBM is finally getting its due and is breaking through the $200/share plateau that has alluded it for the past decade.

I believe this is the true safe territory for this stock and anything less than $200 is almost insulting to a company that is at the forefront of technological innovation, has issued the largest stock buyback program in history and has outperformed the market and beat expectations every quarter for the past 15 years. It's baffling to see the stock so beat down over the years, and for a company that has been in existence for around a 100 years, and has had long-term investors for that length of time, it's about due time that their stock price reflected their successes and longevity.

I look for $200 to become its new bottom and for the price to rise from there higher each quarter. Short-term 3-month target at $215.

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