Earlier this year on Powerlunch, I spoke positively about IBM. SInce they are reporting tonite, CNBC’s Power Lunch wanted to discuss the company. So that’s what I am doing about 1:40pm today, with Sue Hererra.
There are 5 things about IBM you should know:
1. IBM has beaten earnings by low single digits for the past 5 Qs
2. Relatively Cheap 16 trailing earnings vs. 23 for the Dow, and close to 25-30 for a lot of large software names
3. Even though software is only 20% revenue, its about 40% earnings
4. Huge Patents: IBM Leads in U.S. Patents for Thirteenth Consecutive Year; This is potentially a rich pipeline for the company in the future. They currently garner about $1Billion a year in (high profit) revenue from licensing their patents.
5. They are a Large Cap Defensive name that should do well in any downturn
UPDATE: October 18, 2006 9:45am
IBM had very good numbers, ansd is up about $5 bucks this morning.
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