@ef yes just imagine you put that same money into AMD or Nvidia in 2003. Wow totally different story then. Invest wisely!
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IBM is a utility company. They have massive debt in order to buy a massive number of software companies and then destroy them. (Actual utility companies use the money to dig trenches and string wires and do related things.) They, like utility companies, want to lead the league in dividends.
There's a guy who I don't care for but many of you do who started a war last February. Anyway, yada, yada, yada, the war is still unresolved and one thing leads to another and the bond market is the worst it's been in decades. That's a double hit for IBM. First of all, I can find less risky ways to make money than to take advantage of their dividend. Second, they have 56 and a quarter billion dollars in long term debt (a lot of you also hate Lou G., but he didn't leave us with anywhere near this debt.) IBM has to refinance about six and three quarter billion in the next nine months and six billion in the year after that. Just as the utilities loaded up with cheap debt when the current Laurel and Hardy administration was not on the bridge of the Titanic, so did IBM. With wars not doing well causing energy prices to rise and with most central banks limiting their exposure to T-Bills as long as there are no sane people running the USA, US bond yields are dictating that IBM's debt refinancing will be disadvantageous for the company.
I haven't even talked about the fact that IBM is a one trick pony. They are not AI. They are not (hybird) cloud. All they are selling is bafflegab. And no one is buying it. They do have one gem for sure. But, the combination of massive debt and very high (probably unsustainable) dividends in a world where bond yields are through the roof is going to demolish this stock. (I was going to use the K word but I know the moderators would K that.)
I'm just the messenger.
@ef sold the last IBM holding (ESPP, RSU, ....) last year. Stopped investing in IBM few years back.
IBM share was $204 on March 2013. IBM share price is $222 today after 13 years.
My advice to all my friends: Don't waste your investment dollar and attention on IBM.
Bob for maths is how you come to that number.
@cr Larry is a forking Bond villain. Disgusting litttle man.
Because while investors are often fools, they're not fools all the time. Every now and then, they show they can recognize a morally bankrupt fraud like Arvind and that despite cutting the rope for the noose repeatedly and it's still too short.
Larry and Alvind are two peas in a pod.
Trying to catch up to Oracle's 27.29% YTD drop.
IBM su-ks...
Now you are asking the right questions….. ask some more…..