Your thoughts? Anyone understand this and whether it's a valid way to forecast stock valuations?
https://investorplace.com/2021/06/ibm-stock-now-gushing-free-cash-flow-stock-worth-much-more/
7 replies (most recent on top)
Expect a major RA in Sept and Jan with GTS separates. It's already been mentioned. Where's that gushing money well? I believe it's Red Hat with the money well.
Gushing with cash flow for the last decade but 90% of it has gone to dividends, stock buybacks, or silly acquisitions rather than being re-invested in the business.
RIGHT!!!! They must think IBM employees are stupid. Dead company walking🤒
IBM will be crushed by its debt when interest rates start rising.
Yeah, if "IBM is gushing with cash flow", it sure as he-l isn't "trickling down" to the employees! No money for ANYTHING at this cheap-a-s outfit!!!
IBM is good for traders, not for investors. That's one reason why Berkshire sold all of their IBM holdings.
Yeah sure, IBM is gushing with cash flow because it is cutting costs (layoffs, no bonuses, no GDP, no BOND purchases, no travel) like crazy... the question becomes how much more of that can it do to offset the declining revenues?
Not to mention that soon it will restart stock buybacks... so more cost cutting will need to be found!