Powerlunch128x88

 

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.

 

Category: Media

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

8 Responses to “Media Appearance: Power Lunch (10/17/06)”

  1. brian says:

    Nice interview Barry!

  2. Chief Tomahawk says:

    DARN!

    I’ve had the tube on CNBC but the sound on mute for the last 20 minutes. PC faces the wrong way…

    Might you post a link to the feed please?

  3. loge says:

    BR…..where was the sweater ??????

  4. DD says:

    good call b….

  5. Eclectic says:

    Excellent sense of timing you had there! Hope you made a mint.

    Reach around and pat your curmugeonly self on the back!

  6. Adam Coleman says:

    Nice call Barry, up 5% after hrs

  7. BDG123 says:

    Personally? I agree that I’d rather own monster caps in a downturn but I believe IBM has a chance to fall well below its 2002-2003 low if we have a correction to purge the system. It’s trading at 4x book with nary a dividend. A miniscule dividend that falls to even more miniscule levels every day it goes up making it one of the greatest gambles of the century.

    You aren’t the only worry wart left………..

  8. BDG123 says:

    A high probability IBM is up because players are gaming the options market to drive the Dow to 12K. The options market pre-announce pointed to a high probability this would happen. The earnings s*cked and were close to flat if you take out the tax charge which makes earnings look better than expected. Services revenue, which is their golden lamb of growth was essentially flat to down with constant currency and revenue was marginally up on constant currency.

    Let’s see the price hold and continue upward. Then I’ll believe it was about fundamentals.