SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (39003)11/14/2011 10:12:29 AM
From: Paul Senior1 Recommendation  Read Replies (1) of 78662
 
IBM: EKS, I'm in since '96 @$50. With a small add at $124 last year. Sorry I didn't add more when Bill Miller was recommending it at that time.

"The thing that's... interesting about IBM is they're very transparent. They tell you their long-term economic models of the business, they give you detailed guidance as to growth rates and margins and cash flows. The upshot of all this is that there's very little dispute about what IBM is going to earn, and so if any stock should be efficiently priced in the market, it ought to be IBM. And yet IBM for the last five years has grown its operating earnings per share 15% a year, it's grown its dividend over 20% a year. It's bought back stock every single year so shares outstanding have fallen. It's maintained a fortress balance sheet during that time and through the worst recession since the Great Depression. It's continued to have record earnings and either record or near-record margins.

"So my view is if it can grow this way during a terrible time, what's it going to do when things get better? The answer is it will do at least that well. Yet you can buy IBM today at 11.5 times consensus earnings this year and 10.5 consensus earnings next year. " (ed: That was said 5/'10)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News