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Investment Analysis Clubs / The BMW Method

URL:  https://boards.fool.com/looks-like-it-is-below-the-long-term-trends-by-at-33119472.aspx

Subject:  Re: IBM? Date:  7/11/2018  10:22 PM
Author:  HaltCatchFire Number:  42239 of 42349

Looks like it is below the long term trends by at least 1 SD for most time frames. I've invested before, but it's been flat for a good long while now.

Given the strong 4.4% dividend and pretty favorable earnings and cash flows, I'm wading back in.

Thoughts?


Link to the Fool article if you missed it:
https://www.fool.com/investing/2018/07/10/3-bargain-stocks-y...

First, IBM has suffered years of revenue declines. You need to decide if that’s done. If the business continues to shrink then a P/E ratio of 10 might be too high.

Second, it’s interesting that artificial intelligence is listed as a growth avenue. I guess he means Watson. What I’ve seen is that IBM has had trouble converting Watson into sellable business lines.

Third, as far as BMW charts go, I’d look for prices closer to $128 for entry.

Regards,

- HCF
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