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Strategies & Market Trends : Buffettology

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To: Spekulatius who wrote (4561)12/10/2016 3:49:41 PM
From: CitizenKane  Read Replies (1) of 4691
 
Re: IBM

IBM EPS was 4.44 in 2000 and now it is 12.24. There were 1762.9 million shares outstanding in 2000 and now there are 950.85 million shares.

The company keeps the most profitable activities and drops the least profitable. In my opinion this is a sign that it is a good management. In the history of IBM many things have happened. But the company has always been able to restructure itself before it is too late.

The decline in results is partly due to the strong dollar. Management has a long-term vision. I think Watson will bring good results in the next few years. Cloud computing too.

The yield is 3.3%. The company regularly generates a lot of Free Cash Flow. In my opinion, at this price there is more to gain than to lose.
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