IBM's stock price may be bottoming out, and resting there for awhile, analysts say
Article Abstract:
IBM's stock hit a 52-week low on Oct 3, 1989, causing securities analysts to suggest that the stock has nowhere to go but up. Although logically it would seem a good time to buy IBM, there are few recommendations from Wall Street that investors should do so. IBM stock may have reached bottom, but there is no telling how long it will be there. Buying now would just tie up money that could be better invested in more volatile stock. Looking toward 1990, analysts do not see anything in IBM's future that will cause the stock to increase significantly. IBM's earnings have decreased an average of one percent a year since 1984, despite strong PC sales, a healthy economy and no loss of market share in mainframes. Between 1989 and 1994, PC sales will slow, a recession might hit, and IBM could lose mainframe market share to smaller systems. All these factors combine to reduce IBM's chances of a big comeback.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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IBM's new workstation line exceeds estimates by analysts for 1990 period
Article Abstract:
IBM's effort to enter the workstation market is going much better than even the most optimistic analysts had predicted. IBM's RS/6000 line of reduced-instruction-set (RISC) computers shipped 25,000 units in 1990, though they were only available in large quantities for the second half of the year. Analysts are even more encouraged by IBM's report that it shipped 10,000 workstations in the month of December alone. IBM reports that its workstations generated $1 billion in revenue for the year, which compares with analysts' expectations of between $500 million and $600 million. IBM hopes to the surpass market's leader, Sun Microsystems, by 1993. IBM captured 5.5 percent of the workstation market in 1990. Sun had 32 percent of the market in that year.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Black-and-blue IBM finds new believers among money managers seeking 'value.' (IBM's stock) (Heard on the Street) (Column)
Article Abstract:
Long regarded as a solid growth stock and indicator of the market's direction, IBM is now regarded as a cyclical stock. But some money managers are buying IBM's stock, which has been doing poorly, saying that the stock is now cheap. For example, David Dreman of Dreman Value Management, which has taken a $100 million paper loss on IBM stock purchased at higher prices, believes that the risk is now gone from the stock. If Dreman Value Management were starting now, says David Dreman, the fund would buy IBM. Many industry observers now believe that IBM's dividend rate will stabilize at about $4.84 a share. Opinions differ, however, and many investors are looking for investments that seem more promising than IBM.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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- Abstracts: Zenith's return to roots may be plunge into problems; decision to abandon computers for HDTV project raises doubts
- Abstracts: Zenith's return to roots may be plunge into problems; decision to abandon computers for HDTV project raises doubts. part 2
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