IBM Common Stock (IBM)

Has done well, but medium- to long-term growth strategy is weak. Some decline in businesses. Made acquisitions at big premiums, impacting cashflow. Dividend won't grow much. Try for $120 or below, collect dividend, sell at peak. Layering in on MSFT over the next 6 months would be better.

Recent success. Nice beat last quarter, up 13% YOY. Flat revenue, general margins beat. 3-5% growth target. He models only 5% growth for 14x earnings. Dividend looks good. Better opportunities in tech and elsewhere.

The question was on AI stocks. It is a good, long-term stable company but not a choice for chip stocks.

Better opportunities, like MSFT or Visa. Not a lot of growth. Look at smaller US and Canadian stocks with better growth profiles. Dividend of 4.5% won't get cut.

Unsure on future growth for company.
~20 years of share price under-performance.
Management not instilling confidence at the moment.
Turnarounds very difficult.
Would not recommend investing. 

Last year, this was flat when all tech was down 28%. Give this stock some respect. Is down 5% YTD. AI could enter the conversation. She doesn't expect any drama when they report Wednesday. They offer slow and steady growth. They have strong services and enterprise businesses.

In terms of AI, they were a leader with their IBM Watson software. He targets $140.30. He owns a small holding. For the end users, IBM is very good with AI software.

No longer a mainframe company and deserves credit for transitioning into blockchain and software. Are earning revenues. Trades at a cheap 14.7x PE.

A services tech company now after spinning off their mainframe business. They historically had trouble growing, and just kept buying back stock to grow EPS, which you can't do forever. There's better growth elsewhere.

It has a good dividend yield of 5.2% as well as good growth potential. Also it has a new CEO and made a great acquisition of Redhat.

Reports next week. A great performer in 2022, but down nearly 10% YTD. It's a value name and value has underperfomed YTD. But expectations are low. They have enterprise exposure which could be weak, but they also have Red Hat. IBM will continue to execute well. A cheap name that pays a good yield.

A show-me name, needs to show blow-out numbers first. A topline number must WOW.

Has long lagged the tech sector, though better in the past year. He's concerned that IBM's mainframe customers will switch to the cloud. He sees only 4-5% growth rate in EPS.