International Business Machines Corp. (IBM) Investing In Areas That Make Sense

Discussing International Business Machines Corp. (NYSE:IBMon Bloomberg, market experts Brian White, analyst with Cantor Fitzgerald and Stocktwits co-founder and chairman, Howard Undzon, focused on the company’s investments and what the management needs to do to boost performance an create bigger shareholder value.

International Business Machines Corp. (NYSE:IBM)

The discussion on IBM followed the company’s recently announced partnership with Apple Inc. (NASDAQ:AAPL), which would see the two tech companies join forces to drive growth of mobile in enterprise.

According to Mr. White, the growth strategy of International Business Machines Corp. (NYSE:IBM)’s CEO, Ginni Rometty, is likely to work and he believes the company is already investing in segments that make so much sense that should impress shareholders. He also noted that the company is undergoing transition and mobile enterprise appears to be in focus.

“IBM is going through a transition, and it was a first time IBM’s CEO ever made it to the Mobile World Congress, and she gave a keynote. They opened up to developers to develop mobile apps, and that is part of what she was talking about. The big areas of focus — big data, cloud, software, social and also mobility,” he said on International Business Machines Corp. (NYSE:IBM)’s breakthrough at Mobile World Congress as well as new business focus.

Although it appears as though International Business Machines Corp. (NYSE:IBM) is building free cash flow as the CEO is under pressure to make shareholders happy, Mr. White doesn’t think the company is doing so at the expense of its investment. In other words, he doesn’t think IBM is under investing.

However, Mr. White acknowledged that there is a problem with the stock of International Business Machines Corp. (NYSE:IBM) in that its growth trails the S&P by a huge margin.

“The problem is the stock is only up 3 – 4 percent since the end of 2011 when she took over in January 2012. S&P is up 56%. This is an issue with investors,” he observed.

In his contribution to the discussion, Mr. Undzon observed that International Business Machines Corp. (NYSE:IBM) has so much ahead of it that it only needs to be clear on its vision.

 “I think IBM is going to have to step up to the plate and really show their vision with some acquisitions and spend some money,” he said.


Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!