| Stock (Symbol) | Stock Price | |
Intl Business Machines (IBM) |
$192 |
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| Data is as of | Expected to Report | Sector |
December 9, 2012 |
Jan 22 |
Technology |
| Sharek’s Take | ||
 IBM is a solid core holding. It’s a stock you can buy and hang on to and I think you’ll be rewarded with around 10% growth per year in addition to a 2% dividend. IBM is increasing profits without growing sales much, some of this is due to the company moving towards being a service company, and some because the company uses cash to buyback stock. I feel IBM this conservative stock has solid upside. |
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| Ten-Year Chart | ||
 The thing I like about this ten year chart is profits have grown at 14% a year yet the stock’s only grown at 9% a year, so IBM stock has some catching up to do. Notice profits have grown every year since 2003. Management has a solid grasp on how to run a successful business. |
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| Profit History | ||
 This was one of the most undervalued stocks of 2008-2010, selling for only 11 times earnings. With an estimated Long Term Growth Rate of 10% and a yield of 1.7%, IBM is worth 15 times earnings. There’s solid upside here. The dividend has increased dramatically the past decade, and has risen for 17 consecutive years (2012). |
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| comPower Ranking | Bottom Line | |
Conservative Portfolio
5 of 18 |
IBM gives conservative investors a way to own technology. You get the potential of double-digit returns plus a healthy dividend for only 13 times earnings. This is a solid core holding with good upside to its Fair Value. IBM is ranked 5th in the Conservative Growth Portfolio Power Rankings. | |
