IBM taking a hit today, down 8% | TigerDroppings.com

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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
76355 posts

IBM taking a hit today, down 8%


Big Blue is off over $16/share at $190.60.

I added some shares to my existing ones when it was $14/share down.

Let me make sure I have this straight: buy high, sell low...right?







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LSU Fan
The Woodlands, TX
Member since Dec 2007
20385 posts

re: IBM taking a hit today, down 8%


quote:

buy high, sell low...right?


that's my current position...

Tech seems to be all over the place this earnings season.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
76355 posts

re: IBM taking a hit today, down 8%


The DJ 30 is down about 25 points at the moment. IBM is responsible for -125 points on that index.


This post was edited on 4/19 at 12:54 pm


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PlanoPrivateer
LSU Fan
Frisco, TX
Member since Jan 2004
1276 posts

re: IBM taking a hit today, down 8%


Any idea why IBM is down so much? The only thing I can find is that they missed earnings estimates but not by much. Something like $.05 out of $3.00 which is less than 2%. Their 1st Q earnings at $3.00 are higher than 1st Q 2012 by $.22 and 1st Q 2011 by $.59. 100 shares would cost me $19,000 so I’m out.

Oh, and here comes it’s down because I bought some.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
76355 posts

re: IBM taking a hit today, down 8%


quote:

here comes it’s down because I bought some.

I already owned some shares. I figured whatever is good enough for Warren Buffet is good enough for me so I bought when he did back in 2011.

quote:

Their 1st Q earnings at $3.00 are higher than 1st Q 2012 by $.22 and 1st Q 2011 by $.59.
Yep. The only thing is it is the first time IBM has missed its targeted numbers since 2005. So, it was unusual...

quote:

100 shares would cost me $19,000 so I’m out.
I wish I had only bought 100 shares today as it turns out.






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PlanoPrivateer
LSU Fan
Frisco, TX
Member since Jan 2004
1276 posts

re: IBM taking a hit today, down 8%


Thanks for the reply. I can't believe I'm in the same thread with the name Warren Bufffet.





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
76355 posts

re: IBM taking a hit today, down 8%


quote:

I can't believe I'm in the same thread with the name Warren Bufffet.


Don't misunderstand, Buffet bought 64 million shares of IBM back in 2011. I didn't buy quite that many.

However, it's a fact that Buffet and I together own an average of over 32 million shares of IBM.






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
8821 posts

re: IBM taking a hit today, down 8%


quote:

However, it's a fact that Buffet and I together own an average of over 32 million shares of IBM.


Coincidentally, when combined with Warren Buffet, he and I also own an average of over 32 Million IBM Shares






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LSU0358
LSU Fan
Member since Jan 2005
4970 posts

re: IBM taking a hit today, down 8%


Russian what are your thoughts on HPQ?





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
76355 posts

re: IBM taking a hit today, down 8%


DOA





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Zilla
LSU Fan
Friendswood, TX
Member since Jul 2005
9882 posts

re: IBM taking a hit today, down 8%


what is IBM's top source of revenue?

mainframes?
services?
licensing tech?


ETA: LINK / ..I didn't realize how much software they owned.....pretty impressive....



This post was edited on 4/19 at 9:40 pm


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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
76355 posts

re: IBM taking a hit today, down 8%


IBM's biggest revenue producer is providing IT outsourcing services combined with information consultative services. Hardware is less than 30% of its revenues.

That is what convinced Buffet that IBM has a future. Anybody can build a box and fill it with electronic components.






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gizmoflak
Georgetown Fan
Member since May 2007
8916 posts

re: IBM taking a hit today, down 8%


IBM owns a shitton of patents. They are #1 in patent volume every year.


LINK



This post was edited on 4/20 at 9:49 am


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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
76355 posts

re: IBM taking a hit today, down 8%


And you point is?





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gizmoflak
Georgetown Fan
Member since May 2007
8916 posts

re: IBM taking a hit today, down 8%


$1 billion in revenue just from licensing IP





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gizmoflak
Georgetown Fan
Member since May 2007
8916 posts

re: IBM taking a hit today, down 8%


And a massive patent portfolio allows them to easily enter just about any new tech area they want with very little resistance from the other large players


This post was edited on 4/20 at 10:08 am


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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
76355 posts

re: IBM taking a hit today, down 8%


quote:

$1 billion in revenue just from licensing IP
So less than 1% of their annual revenues? And that amount represents less than 1/6 of IBM's R&D expenses.

Again, what is your point?






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gizmoflak
Georgetown Fan
Member since May 2007
8916 posts

re: IBM taking a hit today, down 8%


IBM’s Formula for Success: Patents, Patents and more Patents





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
76355 posts

re: IBM taking a hit today, down 8%


Okay, I give up. You don't have a point relative to Zilla's earnings question about IBM.


This post was edited on 4/20 at 10:52 am


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gizmoflak
Georgetown Fan
Member since May 2007
8916 posts

re: IBM taking a hit today, down 8%


IBM has huge long-term staying power largely thanks to their undying devotion to R&D. Short-term hiccups are of little concern to IBM's brass. If you don't understand that, then I can't help you.





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