Alibaba, IBM, Capital One, American Express: Doug Kass' Views

NEW YORK (Real Money Pro) -- Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.

 


 

Why I'm Not Big on Big Blue

Originally published at 11:05 A.M. EDT on Wednesday, June 10, 2015

IBM (IBM) had a conference call yesterday that focused on its security business.

The company noted that the sector has a large target market -- in excess of $50 billion, with double-digit trendline growth -- but is fragmented and complex to penetrate. (IBM recorded less than $2 billion in security-business sales last year.)

My view: IBM's growth initiatives and tailwinds from markets such as security are fine, but measurably offset by Big Blue's weakening sales and margins in its legacy businesses.

 


 

From the Street of Dreams

Originally published at 10:56 A.M. EDT on Wednesday, June 10, 2015

RBC is lowering revenue and EPS estimates for Alibaba Group  (BABA) following management's conference presentation this week.

The company faces several headwinds, including suspension of its Online Lottery sales and a lowering of fees related to its group-buying platform.

RBC is cutting its BABA price target to $105 from $110.

Position: Long YHOO

 

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