IBM Common Stock (IBM)

Decent. She prefers names with better growth profiles. Spun off mainframe business, which improves growth profile. Now just consulting. Stock's done well, now getting into cybersecurity and AI.

They report next week. The CEO pulled it off through M&A and now we're seeing growth.

They report next week. A pleasant surprise, up 42% this year. They pulled it off with Red Hat and now with AI. 

Yes, he likes this strategy, because it puts less capital at risk. Buying such an option is deep in the money, and you can put the rest of the money in cash to earn income, for example.

Boring, but now things are coming together. Left a lot of baggage behind with the spinoff, but kept Watson, a leader in AI applications in healthcare. Lot of horses that they haven't yet raced. 12-month price target of $257. Yield is 3%.

Great time to buy with weak share price valuation. Moving into A.I. tech which has a lot of potential. Company turning the corner on outlook. Very strong future, and is a hidden gem. Not much downside on valuation, with a lot of upside. 

They are executing well, the valuation is not stretched and they continue to pay a dividend.

The unwind of one factor end tends to be positive on the other. So momentum unwinds into value.

They report next week. Trades at 18x PE, shares up 11% this year and the street expects 4% revenue growth, $12 billion free cash flow while earnings should growth around 5% annually in coming year. 

They report next week. They've become a leading AI consulting firm and thrive in software and cloud.

A few eyars ago they bought Red Hat, the basis of their cloud and AI business, which is now making some noise. IBM has partnered with Meta in AI. It trades below 20x, reasonable. Good opportunity through organic growth. Likes it.

Transitioning to more services. Has done all right. Trades at 16x. Has to prove it can grow double-digit earnings on a sustainable basis before it gets recognition from market, and this is harder for such a large company. Higher rates are impacting customers' budgets, seeing softness.

Legacy tech. Good, likes it. But in that area, other names are better constructed to take advantage of what we expect to happen over the next couple of years in AI integration in data centres and the like. Great company, but not always the best stock. See his Top Picks.

Really good restructuring into higher-margin services. Can't seem to get out of its own way. Growth trajectory and margins are not compelling. Pretty sure dividend is safe. Not sure lots of upside, given current valuation.

It is at a cheaper valuation and they are re-shaping themselves as a smaller company. You are not paying a big premium and he may consider buying it back.