<<IBM undervalued>>
IBM is actually overvalued. The company sells at 16 times earnings, yet earnings DECREASED by 17%, how do you get undervalued? Should every stock in the S&P have a PE of 23 just because the rest of the market does? What if the company has slowing or lessening earnings like IBM?
IBM played the street well, its the best trick going, warn well ahead of time, when earnings come you then can easily beat the number and your stock will go up. IBM beat a lowered number with less shares outstanding and a lower tax rate, take those away and they miss big time. Combine that with the original estimate and this quarter was a disaster. On top of all that, they said little that was positive about the future. Pricing pressure to continue in PC market, service growth to slow, and Asia will continue to hurt business. IBM is part of the market hysteria, in any other past environment, they would get killed, but the casinos on Wall Street are running at full strength......
Vinman |
