« Surprise! Shares of IBM Can Rise 35% » as per Morgan Stanley analyst – Barron’s


IBM was just a source of disappointments to his sharehoders in last months ( and years). MS analyst says there are 3 reasons to buy the stock now : 1/ Stock is cheap 2/ Dividend of 4,2% is high 3/ Reasons which pushed stocks down are losing steam : The long shift process from hardware to software and from local machines to cloud is coming to an end and so pressure on revenues which for a part was voluntary, margin and profit. Huge investments of above USD 30bln into Cloud, security business, social, mobile and analytics will start to bear their fruit.

IBM’s stock has lost 33% from USD 179 february top to recent bottom at USD 139, an underperformance of roughy 40% versus SP500. Time to catch up has come …

Technically 1/ IBM’s stock price bounced from the USD 135-140 area  2/ Trend via MACD daily shows a reversal  3/ One can see a positive Price/Momentum divergence on chart     …  Chart Here

I bought stock at Opening yesterday just above USD 143.

Link to : Barron’s on IBM – August 23rd

IBM Vs SP500 – Last 2 y