07-21-2015, 11:34 AM
I have been critical of IBM in the past and I stand by it. Its a financial engineering company that has resorted to ballooning debt and buying back shares to prop up the EPS numbers. Revenue's been falling for 13 straight quarters, net income down, profit margin down, debt of $38B, dwindling cash reserves - down from $12B a couple of years ago to $8.8B this quarter.
Im just watching IBM from the sidelines with my bag of popcorn. Im surprised no one has called for Rometty's head yet.
The only bright spot is the cloud business -- im sure an activist investor will call for it to be spun off....but then again, activist investors dont go after bad companies in order to fix it, they go after good/great companies, create a lot of media hype, shake some branches, grab the low hanging fruit and leave.
Im just watching IBM from the sidelines with my bag of popcorn. Im surprised no one has called for Rometty's head yet.
The only bright spot is the cloud business -- im sure an activist investor will call for it to be spun off....but then again, activist investors dont go after bad companies in order to fix it, they go after good/great companies, create a lot of media hype, shake some branches, grab the low hanging fruit and leave.