Chris Kraeuter
This suggests the problems at IBM run deeper than just slicing 4% of its staff. In the past two weeks, IBM has also boosted its dividend, raised its stock repurchase allocation, announced a couple of acquisitions and closed its sale of its PC unit to China-based Lenovo.
As for IBM's stock, it currently trades at 15.8 times this year's earnings and 14 times next year's expected earnings. The shares have traded between 15 and 20 times forward earnings during the past three years, according to David Wong, an analyst at A.G. Edwards. The market is implying that IBM's stock is still not seen as a screaming buy. At its current valuation, investors still need the company to prove fundamentals are expanding and not contracting.TheStreet Premium Services
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
|
|---|---|---|---|---|
| 12,419.86 | 1,313.32 | 2,837.36 | 16.25 |
Oil *
103.00
|
|
DOWN
160.83 |
DOWN
19.10 |
DOWN
33.63 |
DOWN
1.06 |
10 Yr
1.62%
SPDR Gold
151.91
|
|
-1.28%
|
-1.43%
|
-1.17%
|
-6.12%
|
Data delayed 20 minutes |
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