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Tuesday, December 14, 2010

IBM is new tech

I got the sense from yesterday's technology report from Goldman (putting AAPL on the buy list, and HPQ on the sell list), that IBM was on the 'old' technology list, given the target price they gave. (The report's target price was 150, where as I think IBM will see and surpass 150 w/in the next three weeks.)

Anyone who views IBM as 'old' technology did not do a good job researching the company. The company is transitioning, and transitioning very well, but the aspects that are viewed as 'old' (best example is mainframes) is really not accurate. Large companies still need sophisticated mainframes, period. Only so much can go to the cloud, but it just so happens IBM is also a cloud play.

Regardless, the most obvious example of IBM as a leading technology company is Watson. The Jeopardy challenge should highlight IBM's edge to those too lazy to take the time to understand the company. (Warning, when you start digging in the company, it will be hard not to be impressed :)

2 comments:

  1. Did you ever pick up more PBR, as you'd suggested you would, coincidentally a month ago exactly (Nov. 14)?

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  2. Unfortunately I didn't. I picked up more of the others, and to maintain a proper risk profile on the portfolio, I didn't pick it up. (If I did, at 32, I would have sold that position between 34-35.)

    Similar to AXP. Picked it up at 42, but sold it at around 45.

    Keep in mind, I still have a position in PBR. I would like to sell the position at 38. If my portfolio risk profile remains in its current state (as I think it will), I will be able to wait for it. (Although it may see some resistance around 36 due to the 200SMA.)

    If it re-tests 32 over the next few day, I was planning on adding. Then sell this added position at the 200SMA.

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