Friday, April 20, 2012
Look at the numbers: IBM has a book value of $17.31 a share, according to Yahoo! Finance, and 2012 earnings are estimated to be $14.92. That's a fine profit engine, a return on equity of 71%. The stock pays a $3 dividend and reinvests the rest back in the company, where it will get that nice return. When I project out the growth for five years, I find an estimated future price of over $1,200 a share, while collecting fifty bucks or so in dividends. So yeah, I like it: salute to Big Blue.
Posted by RichardG at 8:06 PM