Eight reasons to buy IBM

Discussion in 'Stocks' started by DarkProtoman, Mar 13, 2007.

  1. Here are some excellent reasons to buy IBM:

    1. Good earnings yield of 6.71% beats the 30 year US treasury bond
    yield of 4.75%
    2. PEGY ratio of 1.12 is excellent, showing that it definitely has the
    earnings growth and the dividend yield to justify it's P/E of 14.90
    3. $.30/share quarterly dividend is nice
    4 IBM should definitely look at using it's stock to acquire other
    companies, due to it's relatively high P/B of 4.80
    5 A return on assets of 9.20% is excellent! Above it's main
    competitor, HP, ROA of 8.00%
    6. A 22.4% ROI is way better than HP's ROI of only 16%
    7. Has excellent profitability with a operating margin of 18.50%,
    double HP's 9.70%
    8. IBM landed a $4MM deal w/ Brownsville to design a citywide
    technology modernization project.
    http://www.marketwatch.com/news/story/brownsville-goes-blue-ibm-help/...


    Any comments or additions? Hope my analysis helps!!!
     
  2. 9. You already are long a bunch and need some help.

    :D
     
  3. A 4 million dollar deal? You mean 4 billion by any chance? 4 million is nothing for IBM.