Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

International Business Machines Corp. (IBM) and Google Inc (GOOGL): Hank Smith Love These Stocks

In a discussion with Fox Business News anchors David Asman and Liz Claman from the show ‘After the bell,’ Hank Smith, who is the CIO of Haverford, speaks on his stock picks which include International Business Machines Corp. (NYSE:IBM) while Dan Haugh, who is the President of PTISecurities.com discusses Google Inc (NASDAQ:GOOGL).

 “Well, first of all it is cheap. It’s not just attractively priced; it is cheap. So, if you are looking for something with a below market PE, IBM has that.” said Smith, on his stock pick of International Business Machines Corp. (NYSE:IBM), that has been showing a stagnation in revenues over the past several quarters.

Google Inc (NASDAQ:GOOGL)

According to Smith, if the upcoming results are able to beat consensus then the stock can be seen breaking the $200 mark. He added that International Business Machines Corp. (NYSE:IBM) has been an aggressive buyer of its own stock and that the recent deal with Apple Inc. (NASDAQ:AAPL), to develop applications catering to big enterprises, can turn on to be a positive for the stock.

The deal will help both the companies in capturing the growing technological needs of corporate who are slowly, but steadily evolving from using PC’s to more mobile devices like smart phones and tablets.

Meanwhile, speaking on Google Inc (NASDAQ:GOOGL), Haugh said “I think it (recent investments in R&D paying-off) will, but I don’t know about the payoff quite yet. What they are acquiring are future business lines, which won’t help them right now, but, on the other hand, their main business is generating just tonnes of cash, so this, like International Business Machines Corp. (NYSE:IBM), they both are revenue stories.”

Haugh was referring to the various acquisitions and R&D investments made by Google Inc (NASDAQ:GOOGL), which were to the tune of billions of dollars. Google has been using its mighty cash pile for diversification into different industries by acquisition of various companies.

In a similar instance, Google Inc (NASDAQ:GOOGL) has joined hands last week with Novartis AG (ADR) (NYSE:NVS) to come together in the further development of smart contact lens.

http://video.foxbusiness.com/v/3680911524001/stocks-to-watch-ibm-tgt/?playlist_id=937116503001#sp=show-clips&v=3680911524001

Disclosure: none

 

Loading Comments...