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Thursday, April 10, 2014

$ibm - blah to awesome?

With a timespan of a very "blah" quarter, IBM traded like crap, then with very little positive chatter, traded awesomely. 

And that's the head scratcher. It's a tech company. News about its business performance should be readily available for extrapolation. 

The one positive data point was Gartner's IT spending projections. Other then that, no chatter about future potential regarding Watson or its public cloud initiative (other than deflationary pressures from price cuts across all competitors). 

I am a fan of IBM. They have a corporate structure that allows for them to continuously evaluate and change their business. My biggest gripe is their poorer execution in relation to their competitors.  Usually, a move from 170 to 197 (near highs), are caused by a catalyst. A break from a negative perception.  But there was no catalyst in Q1. 

The last time I felt this way about IBM, a month later it was revealed that Buffett took on a major stake.  Maybe similar scenario is happening, with other bigboys. Or Buffett is adding. 

The Q2 report will be telling. 

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