Can Quantum Leap Us into the Cosmos?Boeing's venture into the quantum realm is not just an exploration; it's a bold leap forward into a universe where technology transcends traditional boundaries. Through its involvement in the Quantum in Space Collaboration and the pioneering Q4S satellite project, Boeing is at the forefront of harnessing quantum mechanics for space applications. This initiative promises to revolutionize how we communicate, navigate, and secure data across the vast expanse of space, potentially unlocking new realms of scientific discovery and commercial opportunity.
Imagine a world where quantum sensors offer unprecedented precision, where quantum computers process data at speeds and volumes previously unimagined, and where communications are secured beyond the reach of conventional decryption. Boeing's efforts are not merely about technological advancement; they are about redefining the very fabric of space exploration and security. By demonstrating quantum entanglement swapping in orbit with the Q4S satellite, Boeing is laying the groundwork for a global quantum internet. This network could connect Earth to the stars with unbreakable security and accuracy.
This journey into quantum space technology challenges our understanding of physics and our expectations for the future. With its history of aerospace innovation, Boeing is now poised to lead in an area where the stakes are as high as the potential rewards. The implications of this work extend far beyond secure communications; they touch on every aspect of space utilization, from manufacturing in microgravity to precise environmental monitoring of our planet and beyond. As we stand on the brink of this new frontier, the question isn't just about what quantum technology can do for space, but how it will transform our very approach to living, exploring, and understanding the cosmos.
Quantumcomputing
Can Quantum Security Save Our Digital Future?In the relentless evolution of cybersecurity, Palo Alto Networks is at the forefront, challenging the conventional with the introduction of the Quantum Random Number Generator (QRNG) Open API framework. This innovative approach not only aims to combat the looming threats posed by quantum computing but also redefines how we think about security in a digital world increasingly intertwined with AI and machine learning. By fostering collaboration across different QRNG technology providers, Palo Alto Networks is not just enhancing security measures but is also setting a new standard for industry-wide interoperability.
The company's commitment extends beyond technological innovation into practical applications, as evidenced by its strategic partnership with IBM and the UK Home Office to secure the Emergency Services Network. This initiative showcases Palo Alto Networks' capability to integrate advanced security solutions into critical infrastructure, ensuring resilience against cyber threats in real-world scenarios. Moreover, their achievement of the FedRAMP High Authorization for their cybersecurity platforms marks a significant milestone, affirming their role in safeguarding even the most sensitive government data.
But the implications of Palo Alto Networks' advancements go deeper, challenging us to rethink our approach to digital security. Their platformization strategy, which unifies disparate security tools into cohesive platforms, not only streamlines security operations but also leverages AI to provide smarter, more proactive defense mechanisms. This strategic pivot towards a more integrated and intelligent security ecosystem is not just about managing current threats but about preparing for an unpredictable future where digital threats could evolve beyond our current comprehension.
In essence, Palo Alto Networks is not merely responding to the cybersecurity challenges of today; they are reimagining them for tomorrow. By pushing the boundaries of what's possible with quantum security and platform integration, they invite us to question: Are we ready for a world where security is as dynamic and forward-thinking as the threats it aims to counter? This thought-provoking journey into the future of cybersecurity compels us to stay informed, engaged, and critically aware of how we protect our digital lives.
Can Intel Redefine the Future of Tech?Intel is at the heart of a technological renaissance, pushing boundaries across multiple fronts in the tech industry. From pioneering neuromorphic AI chips that mimic human brain functions for energy-efficient computing in everyday devices to quantum computing advancements with its Tunnel Falls silicon quantum chip, Intel is not just following trends but setting them. Introducing the Spiking Neural Processor T1 could revolutionize how smart devices process data, significantly enhancing battery life and reducing reliance on cloud computing.
In the quantum realm, Intel's release of a 12-qubit silicon chip to the research community marks a significant step towards practical quantum computing. This initiative fosters academic exploration and positions Intel as a leader in developing scalable quantum technologies. The potential here is vast, promising breakthroughs in computation that could challenge our current understanding of what's possible in data processing and security.
Moreover, Intel's strategic maneuvers in the chip manufacturing sector are particularly intriguing. With rumors of Apple potentially shifting its iPhone chip production to Intel, and government initiatives encouraging domestic production, Intel stands at a crossroads of innovation and geopolitics. This could lead to a reshaping of global supply chains, fostering technological and strategic advancements in national interests.
The question now is not just whether Intel can redefine the future of tech, but how its multifaceted approach will inspire a new era of computing, where efficiency, sustainability, and strategic autonomy are paramount. Intel's journey is a narrative of challenge and change, urging us to reconsider the limits of technology and the shape of our digital future.
Quantum Corporation: Major Levels to WatchGood morning, trading family!
Quantum Corporation is at a crucial point:
Above $34.50: A breakout could push us to $50 or even higher.
Below $29: The downside opens up to the $6–$12 range.
Stay sharp as these levels could define the next big move.
This Sunday, I’m hosting a Master Your Mind Traders Class to help you build a stronger trading mindset and strategy. Seats are limited—send me a DM for details!
Kris/Mindbloome Exchange
Trade What You See
Will Quantum Computing Make Our Digital Fortresses Crumble?In the race toward quantum supremacy, D-Wave Systems stands as a testament to humanity's relentless pursuit of computational boundaries. Their latest Advantage2 processor, boasting over 4,400 qubits, doesn't just represent an incremental step forward—it demonstrates quantum computing's transformation from theoretical promise to practical reality. With processing capabilities 25,000 times faster than its predecessors in materials science applications, we're witnessing the dawn of a new computational era.
This quantum revolution extends far beyond laboratory walls. NASA and Google's collaborative Quantum Artificial Intelligence Lab exemplifies how quantum computing is already reshaping our approach to complex challenges. From simulating planetary atmospheres to optimizing space missions, these systems tackle problems that traditional computers find insurmountable. The technology's ability to explore multiple solutions simultaneously opens doors to possibilities we're only beginning to imagine.
However, recent developments from Chinese researchers using D-Wave systems to breach encryption algorithms present a double-edged sword. While showcasing quantum computing's extraordinary potential, these breakthroughs signal a fundamental shift in cybersecurity paradigms. As we stand at this technological crossroads, the question isn't whether quantum computing will transform our world, but how we'll adapt to its profound implications for security, science, and society. The future isn't just approaching—it's already unfolding at quantum speed.
Quantum Computing vs. TechIntroduction:
Technological advancements continue to reshape markets, with artificial intelligence (AI) dominating headlines in recent years. However, the next major frontier appears to be quantum computing. The ratio between the quantum computing sector NASDAQ:QTUM and technology AMEX:XLK provides a unique perspective on this emerging trend.
Analysis:
Key Breakout: The QTUM-to-XLK ratio has recently broken out of a rounding bottom formation, a classic bullish reversal pattern. This breakout signals growing investor enthusiasm and capital flow into quantum computing, suggesting it may be the next major growth story in tech.
Higher Highs and Higher Lows: The ratio is printing a series of higher-highs and higher-lows, confirming a bullish trend. As long as this structure remains intact, quantum computing warrants serious attention.
Healthy Consolidation: After the recent surge, a pause or slight pullback would be a healthy consolidation within the broader uptrend. Such moves often precede the next leg higher.
Implications for Investors:
The breakout highlights quantum computing's increasing importance and potential. This sector could mirror the early stages of AI adoption, suggesting substantial long-term growth opportunities for QTUM-related investments.
Trade Setup:
Bullish Scenario:
Entry: Look for pullbacks to support levels or a continuation of higher-highs for confirmation of trend strength.
Target: Watch for the ratio to continue trending upward, signaling outperformance of QTUM over XLK.
Stop Loss: Place stops below recent lows to manage risk in case of a deeper correction.
Bearish Scenario:
A breakdown below the trendline or failure to print higher-highs would signal potential weakness, warranting caution.
Conclusion:
Quantum computing is emerging as the market’s next big focus, with the QTUM-to-XLK ratio breakout suggesting robust momentum in the sector. While a pullback could offer better entry opportunities, the long-term growth story for quantum computing remains compelling. Are you ready for the quantum revolution? Let’s discuss in the comments below!
Charts:
(Include charts showing the QTUM-to-XLK ratio breakout, the rounding bottom formation, and key levels of support and resistance. Highlight the trendline and any recent consolidation zones.)
Tags: #QuantumComputing #Technology #QTUM #XLK #EmergingTrends #TechnicalAnalysis #GrowthInvesting
D-Wave Quantum (QBTS) Analysis Company Overview:
D-Wave Quantum NYSE:QBTS is a pioneer in commercial quantum computing, leveraging its annealing-based quantum technology to address complex computational challenges. Its first-mover advantage in quantum solutions positions it as a key player in this emerging industry.
Key Catalysts:
Differentiated Technology:
D-Wave’s annealing-based quantum model sets it apart from competitors focused on gate-based systems, enabling practical, near-term solutions for optimization problems across industries.
Government and Defense Partnerships:
Increasing traction with key clients like the U.S. Department of Defense and other government agencies validates D-Wave’s credibility and enhances its potential for lucrative long-term contracts.
Strong Revenue Projections:
Wall Street forecasts a nearly 70% revenue growth to $14.8 million by 2025, reflecting rising demand for D-Wave’s quantum solutions and marking progress toward scalability and profitability.
Investment Outlook:
Bullish Outlook: We are bullish on QBTS above the $3.75-$3.80 range, supported by its competitive technology, increasing adoption, and strategic partnerships.
Upside Potential: Our upside target for QBTS is $9.00-$10.00, driven by expanding commercial applications, strong revenue growth, and continued government traction.
🚀 QBTS—Harnessing Quantum Power to Solve Tomorrow’s Challenges Today. #QuantumComputing #Innovation #TechGrowth
$NYSE:QBTS Consolidating between $4 and $5NYSE:QBTS appears to be consolidating between $4 and $5 a share. Lots of buzz right now in the quantum computing space. D-wave has been in the headlines quite a bit along with NASDAQ:NVDA and NASDAQ:RGTI These stocks are generating a staggering amount of daily volume. Which is great when attracting the FOMO crowd!
Looking for a breakout after this closes above the recent highs of $5.38 (with relatively higher volume). If it misses the breakout then I suspect we're in for another cycle of down/up oscillation.
Primary support is at ~$4.15 with the secondary major support at ~$2.77
secondary.
If this bounces down prior to a breakout, there will probably be opportunities to buy on a dip probably in the $4.20 - $4.60 range.
As with anything with a lot of volatility, hang on to your seats!
Can Computation Transcend Its Own Limits?In the vast, unexplored terrain of technological innovation, D-Wave Quantum Inc. emerges as a pioneering navigator, challenging the fundamental constraints of computational science. Their groundbreaking 4,400+ qubit Advantage2™ processor represents more than a technological milestone—it is a quantum leap that promises to redefine the very boundaries of problem-solving across complex domains like materials science, artificial intelligence, and optimization.
The true marvel of this quantum revolution lies not merely in processing speed but in a fundamental reimagining of computational potential. Where classical computers navigate problems sequentially, quantum computing exploits the bizarre, counterintuitive properties of quantum mechanics—enabling simultaneous multiple-state calculations that can solve intricate challenges up to 25,000 times faster than traditional systems. This isn't incremental improvement; it's a paradigm shift that transforms computational impossibility into potential reality.
Backed by visionary investors like Jeff Bezos and strategic partners including NASA and Google, D-Wave is not simply developing a technology—it is architecting the future's computational infrastructure. By doubling qubit coherence time, increasing energy scale, and expanding quantum connectivity, the company is methodically dismantling the barriers that have historically confined computational thinking. Each breakthrough represents a portal to unexplored intellectual territories, where problems once deemed unsolvable become navigable landscapes of potential insight.
The quantum frontier beckons not just as a technological challenge, but as an intellectual invitation—a profound question of how far human knowledge can stretch when we liberate ourselves from conventional computational thinking. D-Wave's Advantage2 processor is more than a machine; it is a testament to human imagination, a bridge between what is known and what remains tantalizingly unexplored.
Is Microsoft's Quantum Leap a Calculated Investment?In the dynamic landscape of tech investment, Microsoft's quantum computing advancements have sparked significant interest. However, as with any emerging technology, the question remains: is the potential return on investment justified by the inherent risks?
Microsoft's strides in quantum computing are undeniable. From creating record-breaking logical qubits to demonstrating practical applications, the company has established itself as a frontrunner in this field. Yet, the path to commercialization is fraught with challenges, including technological hurdles and intense competition.
Investors must carefully evaluate the potential rewards against the risks. While the long-term prospects of quantum computing are promising, the short-term challenges and market uncertainties cannot be overlooked. Is Microsoft's strategic positioning and technological prowess sufficient to navigate these obstacles and capitalize on the potential benefits of quantum computing?
A Deeper Dive:
To make an informed investment decision, investors should consider the following factors:
Technological Progress: The rate of advancement in quantum computing technology will significantly impact the timeline for commercialization and potential returns. While Microsoft has made significant strides, the field is still evolving rapidly.
Competitive Landscape: The competitive landscape in quantum computing is dynamic and includes other tech giants like Google, IBM, and Amazon. The ability of Microsoft to maintain a competitive edge will be crucial for long-term success.
Market Demand: The potential market for quantum computing applications is still emerging. The development of practical use cases will be essential to drive demand and justify investment.
Regulatory Environment: Government policies and regulations can impact the development and commercialization of quantum computing technologies. Investors should be aware of any potential regulatory hurdles.
Economic Factors: Macroeconomic conditions, such as interest rates and market volatility, can influence investment decisions. Investors should consider how broader economic trends may affect the quantum computing market.
Conclusion:
Investing in Microsoft's quantum computing endeavors presents both opportunities and risks. While the long-term potential is significant, investors must carefully assess the factors outlined above to make an informed decision. As the field continues to evolve, it will be essential to stay updated on the latest developments and market trends.
Article Title: Is AI Just Hype?In the whirlwind of AI's rapid ascent, a critical question emerges: Is the hype surrounding AI justified, or are we witnessing a bubble fueled by inflated valuations and limited innovation? Let's delve deep into the AI industry, separating the signal from the noise and providing a sobering reality check.
The Super Micro Cautionary Tale
The financial woes of Super Micro Computer serve as a stark warning. Despite the soaring demand for AI hardware, the company's internal challenges highlight the risks of investing solely in market enthusiasm. This case underscores the importance of **industry openness** and **due diligence** in the face of AI's allure.
A Landscape of Contrasts
The broader AI landscape is a tapestry of contrasting narratives. While pioneers like DeepMind and Tesla are pushing the boundaries of AI applications, a multitude of companies are capitalizing on the hype with products lacking substance. This proliferation of **AI hype** has created a toxic environment characterized by inflated valuations and a lack of substantive innovation.
Market Dynamics and Future Prospects
As the market for AI hardware matures, saturation and potential price drops loom. NVIDIA's dominance may be challenged by competitors, reshaping the industry landscape. The future of AI, however, lies in the development of more sophisticated systems capable of collaboration and learning. The integration of **quantum computing** could revolutionize AI, unlocking solutions to complex problems that are currently beyond our reach.
Conclusion
The AI industry is a complex landscape, filled with both promise and peril. While the hype surrounding AI may be tempting, it's imperative to scrutinize each company's core innovation and value. As the market matures and competition intensifies, those who can deliver **real value** and **technological advancements** will ultimately prevail. The Super Micro case serves as a stark reminder that in the realm of AI, substance, not hype, is the true currency of success.
D-Wave Quantum Inc. Expands US Footprint, Boosts Defense TiesD-Wave Quantum Inc. has strategically expanded its US operations by deploying a second Advantage quantum computer at **Davidson Technologies**' Huntsville headquarters. This strategic move reinforces the company's commitment to the US defense sector and positions it as a pivotal player in developing quantum computing solutions for critical national security missions.
The collaboration between D-Wave and Davidson Technologies marks a significant milestone in the quantum computing industry. By combining D-Wave's quantum computing expertise with Davidson's deep-rooted experience in aerospace and missile defense, the partnership aims to accelerate the development of quantum-powered solutions for the US government. The establishment of a secure environment for quantum computing operations at Davidson's facility is a critical step in unlocking the full potential of this transformative technology.
D-Wave's decision to expand its US footprint underscores the company's confidence in the growing demand for quantum computing solutions within the defense sector. As the global race for quantum supremacy intensifies, D-Wave's strategic positioning in the US market places it at a competitive advantage. The deployment of the second Advantage quantum computer is expected to attract further investment and foster collaboration within the quantum computing ecosystem.
By aligning itself closely with the US defense sector, D-Wave is positioning itself as a key contributor to the nation's technological advancement and national security. As quantum computing technology matures, the company's role in shaping the future of defense and intelligence is likely to become increasingly prominent.
RGTI Rigetti Computing Options Ahead of EarningsAnalyzing the options chain and the chart patterns of RGTI Rigetti Computing prior to the earnings report this week,
I would consider purchasing the 2.50usd strike price Calls with
an expiration date of 2023-8-18,
for a premium of approximately $0.30.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
SPAC: Special Acquisition to "IPO private companies"Dipping your toes into the wild "reverse IPO" SPACs....
A SPAC, Special Purpose Acquisition Company, is a company that uses its funds to transform existing private companies to list them on the Stock Market. Read up on the SEC.GOV on these "special" financial instruments from Wall Street and friends before risking a penny on these things.
We'll use a special SPAC acquiring a company very close to home: D-Wave Systems of Vancouver (Burnaby), Canada regulated under Canadian and BC Laws.
For D-Wave's IPO via XPOA (the SPAC) to QBTS ("quantum bits") this will be done on the NYSE listed. D-Wave Systems is currently private and a leader in Quantum Computing with North American headquarters and control. A former Canadian star is graduating to the US. See the company web site for details www.dwavesys.com
AI (Artificial Intelligence) is the future and "Quantum Bits" D-Wave QBTS might do very well as it becomes fully vetted in the USA via it's "big board", the NYSE (New York Stock Exchange). Everything needs "servers" and quantum computers are the big players in serving processing speeds. Check the past and recent clients for D-Wave Systems.
In this Tutorial, we'll use TradingView Charts to explaining the possible price action on this chart based on the public information available both in the US (new D-Wave Regulatory home) and Canada (existing D-Wave Regulatory home).
As a way of a background: D-Wave a leading Canadian Quantum SuperComputing is on its way to "move" from being privately held in Vancouver, Canada to being American sharesholder owned via NYSE under the expected symbol QBTS..SPACs are one way to play the IPO but it's all speculative. These are listed as
The very interesting thing with the Markets is Canada operates under its own rules and Laws. So something that might be approved in Court last week for example, is "public" in Canada but may not be advertised in the US until regulatory requirements are met in both Canada and the US. The Charts on XPOA (DCPM Capital), shows the spike in February 2022 when the acquisition was announced.
"Update: D-Wave to Go Public via Merger with SPAC DPCM Capital; DPCM Shares Rise
Feb 8, 202208:47 Reuters
D-Wave Systems, a provider of quantum computing systems, software, and services, said Tuesday that it has agreed to merge with special purpose acquisition company DPCM Capital (XPOA) to become a publicly-traded entity."
In July, the charts shows the XPOA (and associated XPOA.U and XPOA.W) was repriced and the market respected sending the SPAC from the $10s to the $7s
This is a SPAC to watch since D-Wave Systems is a large company located in Greater Vancouver, Canada. It was a Canadian technology company and will become one of the few (or only?) pure play US company in the Quantum Computing space.
There is a customary US publication ban until proper regulatory approval is received. The "may not be distributed in the United States" allows the company to get past stockholders to understand the restructuring. Track the official Public filings available from the SEC in the US. The SEC (Securities and Exchange Commission) being the regular lists any public information as filed by the company at: www.sec.gov
The Latest public news is www.sec.gov
A Shareholder vote to be voted on TOMORROW August 2nd 2022 Price action shows it has very good changes of being approved especially given the Provincial/State Canadian BC Court Approval last week which was public with restrictions on the company relating to publication in the US prior to Shareholder approval.
Interesting times...
DISCLOSURE & Liability Waiver: The above could be all wrong. FACT CHECK everything anonymous posts! BR is part of a group of Researchers of the Markets and regulatory protocols. SPACs are truly "special" (read up at SEC.GOV) and not for the novice investors. These "high growth speculative plays" need to be viewed with either deep fundamental analysis. HTA (Hybrid Technical Analysts) using certain "conditions" to determine when to jump on and off. Volume and changes in volume is one of the key indicators and mapping these to Regulatory Disclosures is interesting. For "XPOA SPAC to QBTS IPO", since this is the Study at this point given the Events, we expect Bullish volume to possibly resume here with a massive short squeeze as the dark uncertainties get cleared up tomorrow DPCM Capital/D-Wave Systems Special Shareholder Vote August 2nd 2022. Only shareholders as of June 2022 get to participate and vote at the Shareholder Meeting. Contact the company or Regulators for more information or post as a Comment if you know something public that isn't widely known. Just think I'm just an "Elf on summer break", I have no freaking idea where that Rudolf is! That "red nose" is a concern for some but it's NOT because the poor is a drunk. That's vicious rumours by bad actors! He was just born that way! Seriously, this is just an early "heads up" from "Up North", friendly neighbours. Hey!
Peace on Earth and at Home.
Special to Quantum ComputingIt's often said the people who made money during the Gold Rush were pick makers and Lewis Jeans Co. In the digital world, leaders in computing power are at the forefront of the biotech, robotics and AI revolution that we have embarked on. Grab your seat... "mutability" is a powerful skill to have. Understanding the environment and adapting to the ever changing landscape has never been more important. Let's talk about those SPACs Never been a fan until just last week more as a co-research project I'm working on for security.
Let's focus on one that was announced last Feb 2022 and is heading to a Special Shareholder Vote tomorrow. "D-Wave Systems, a provider of quantum computing systems, software, and services, said Tuesday that it has agreed to merge with special purpose acquisition company DPCM Capital (XPOA) to become a publicly-traded entity."
There is a special shareholder meeting for holders of this SPAC to readjust to the changing times. That event will happen tomorrow August 2nd 2022. If you missed it, check with IR and SEC public filings at edgar.sec.gov As a US regulated company, it should all be there. D-Wave in Canada is currently private and apparently firing on all cylinders from informal observations.
Canada filings would be done within the appropriate Authority & Regulator for that Jurisdiction. Check with a financial advisor. I'm just an observer on a keyboard that likes to look at charts, keep my nose clean and study the markets to find possible gems in the muck of "stuff".
D-Wave Systems is a great candidate for a SPAC reverse-IPO thing. Let's hope the Regulators on both sides of the border work together to make sure all eyes are on this one.
Note: This was the last update with summary from Feb 2022:
Update: D-Wave to Go Public via Merger with SPAC DPCM Capital; DPCM Shares Rise
Feb 8, 202208:47
(Updates with stock move in the headline and last paragraph.)
D-Wave Systems, a provider of quantum computing systems, software, and services, said Tuesday that it has agreed to merge with special purpose acquisition company DPCM Capital (XPOA) to become a publicly-traded entity.
Upon closing of the deal, shares of D-Wave Quantum Inc., a newly formed parent company of D-Wave and DPCM Capital, will start trading on the NYSE under the symbol QBTS.
The transaction values D-Wave at an equity value of roughly $1.2 billion. D-Wave plans to use proceeds of $340 million to further accelerate its delivery of in-production quantum applications for blue-chip customers and to build on over 200 US patents that it has been granted.
After the closing of the deal, the combined entity will continue to operate from D-Wave's R&D and head office location in British Columbia, Canada.
The Analysis:
TA As of August 1st 2022. Tradingview TA www.tradingview.com (note: XPOA symbol to change to QBTS apparently?)
Summary: SELL 14,7,5 (watch last number increase as Yes vote gets confirmed, the current hypothesis)
Oscillators BUY 1,6,4 (mostly neutral at 6 but 4 should be increasing)
Moving Averages STRONG SELL 13,1,1 (MA-only based short sellers/algos/traders want to sell. This could be a formidable short squeeze potential in vote is large, or shorts could be predicting this is garbage).
Fundamentals
Everything depends on the vote tomorrow. Based on all information findable in Public (via SEC Edgars and other official sources). This is a Watch or Casino Bet pending vote. Tomorrow will confirm a Bullish Run or an abysmal US SPAC failure. Dog Food Fund Candidate "pre-IPO" "smelly SPAC" XPOA -> NYSE QBTS Quantum Computing "junior" that is a leader in its North American space. Place your bet, trade or investment .
Quantum Computing is Coming. Is the Crypto Industry Ready?A lot of public and private interests are pouring a lot of money into quantum computing right now, and there have been significant breakthroughs in the technology in the last few years that has made it possible for people to start thinking about practical applications. Quantum computers are attempting to crack encryption algorithms such as Elliptic Curve Digital Signature Algorithm (ECDSA) that Bitcoin runs on - putting the entire ecosystem at risk if the emerging technology is successful in becoming commonplace.
A quick look at some of the emerging concepts coming out of research institutions and their potential effects on the crypto market as a whole.
steveblank.com
www.coindesk.com
I think you buy IBM and hold it for a decadeIBM dipped after its earnings report Friday and now sits at an important support level. While I'd love for it to dip to $110 or even $100 so I could place a larger buy order there, I have my doubts that it will dip that far. Dips have been hard to come by in this bull market. And while IBM had a disappointing quarter, executives forecasted that it will be back on track to sustainable revenue growth by the end of the year.
For a technology stock, IBM is surprisingly inexpensive. I've currently got the stock's forward P/E at about 10.5, and forward P/S at about 1.4. Compare that to, say, Microsoft with a forward P/E over 30 and a forward P/S over 10. In addition to providing a good earnings yield, I forecast that IBM will yield 5.8% in dividends over the next year. Overall, I estimate that IBM has over 17% upside to its median price-to-value ratio of the last four years.
The reason IBM is so cheap is that its EBITDA per share has been in a long, slow slide for the last ten years. For the last four years, EBITDA has shrunk over 1% per year. Sales growth over the last four years was barely positive, with a growth rate of 0.01%. However, I'm not convinced that these are the most relevant numbers. EBITDA is not a very good measure of profitability, and in fact its current popularity in the investment world is a bit worrisome. A better metric is IBM's free cash flow, which has grown about 0.5% per year over the last four years. And its dividend has grown about 1% per year. So personally I think the company has already turned a corner to the upside in terms of profitability. Plus, IBM has unusually good ESG ratings and generally positive market sentiment, with put/call ratios looking quite bullish and average analyst price target 15% above the current price.
Most importantly, I think IBM has incredible potential as a technology leader. They've had more patents than any other company, by a wide margin, for 27 years running. They're averaging 82 patents per year per billion dollars of market cap, which means you're buying an incredible amount of cutting-edge technology for the price you pay. Of the companies I follow, the next best value in terms of patents-to-market-cap is HPE, with just 26 patents-per-year-per-billion. And IBM's patents are in potentially world-changing fields, like AI and quantum computing. This is by far the best value in the market for a Singularity technology play. And that, more than anything else, is why I think you buy IBM here and hold it for a decade.
IBM has crossed into the lower half of its ten-year triangle and has fairly good risk-reward within the triangle from here. Assuming it eventually breaks out of the triangle to the upside, I'd expect it to eventually recapture its 2012 highs over $200 per share.