IBM, with a New Spin

International Business Machines Corp. (IBM) has been heavily positioning itself to be a player in the consulting business as of late, which can be noticed in particular by their television ad campaigns. IBM is yet another one of the newer additions to the virtual Million Dollar Portfolio. The stock has seen a 52-week range of 71.85 - 90.62, and is currently priced at 83.06, which with an averaged forward & trailing price/earnings value of 15.09, is pretty good. The company has a low debt/equity ratio of only 0.684, and a cash hoard of 13.69 Billion. Most analysts estimate the stock to appreciate about 16% in the coming year.

IBM Financial Pointers

Morningstar.com - Show me 10 years of valuation history. - The trailing price/earnings hasn't been this low since 1997.

Reuters.com - IBM services unit seeks profit in smaller deals - "IBM's software business, by contrast, had a gross profit margin of nearly 88 percent in 2005. IBM says many services could be standardized in the form of software, boosting profitability as it reduces labor costs."

Forbes.com - Palmisano's IBM Steps Toward Atom-Size Computers - "Lately they've been working on a tool that is based on the spin of electrons and atoms, and could eventually build microscopic computers."

washingtonpost.com - IBM Makes A Play for Microsoft's Customers - "International Business Machines Corp. said it will roll out an aggressive strategy today to lure business customers away from rival Microsoft Corp., offering bounties of up to $20,000 to sales partners who can persuade companies to make the switch."