IBM IS SET TO ROCKET?IBM is set to rocket if it can break $140 in 2022.
Create a massive green leg, still is looking pretty long.
Fundamentally they have done the work to focus strictly on cloud business which is expected to grow year over year.
Daily MACD continue green yesterday . Shares to borrow and short has dried up.
Moving in a triangle strenght to 140$, then looking for small retracement and then we will waiting for triangle breakout and conirmation for 150$ and more.
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IBM trade ideas
$IBM bounce? potential target $300 (4/5)Conviction: 4/5
need to break above descending resistance line for confirmation.
depending on speed of ascent, upper channel points to $300 target
General Thesis
bounced off long-term channel support since 1984-ish recently in 2020
also seems to continue channel since 1999
bounced off short term channel since 2020 lows
weekly RSI about neutral
Growth
Gross margins (50%) is pretty steady, near historical highs
Revenue growth (0.33%) is super low, but recent highs
Value
P/FCF below average (25th percentile)
P/S about average
Fundamentals & Balance Sheet
low debt to asset (<1)
Potential Risks
entry for Weekly RSI is not ideal, could be lower
IBM - careful SELLIBM is within a defined regression channel, and the top is around $ 129-130.
The stochastic RSI is on high side, and the RSI is high based on historical performance.
I feel selling near top of channel $ 128-130 with tight stop $ 135, which means we would be trading within the GAP. The GAP down previously suggest we may trade below that for the coming weeks.
The over picture is we should re-test lower $ 116.
Wait the selling moment for IBMIBM's stock is on my target to sell.
Firsrly, it is under EMA200. The RSI form a trading divergence on my extreme bought area.
But won't directly sell it now. I want to wait the bearish candlestick on a daily timeframe exactly on the next day. EMA200 curve will be my maximum stop loss if I execute selling.
IBMI watched this ticker for 2 weeks now. I expected the reversal on the weekly channel which was confirmed. I am bullish on this and I believe we are seeing money flowing into this ticker. We have a gap on the Daily to fill but it appears we rejected it last week. I am watching for continuation and if it fails, I expected a retest of the weekly channel.
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IBM Idea - Restoring TrendlineCurrently price is sitting just under a major trendline that can be drawn
Similarities can be drawn between a dip in the early movement of IBM and one that has occurred recently
Post this dip, the price rose and retook the trendline
I expect this to be the case again
Weekly Chart
$IBM coming into support for swing into 2022 Idea : Swing Long $IBM from support levels into next earnings (~3 months).
Rationale : The last two quarters earnings were great for IBM and price increased both times, last year around this time we had a big gap down after earnings , and ran up into the next earnings which had another gap down and then ran up. I anticipate there is seasonally in their revenue recognition and with the gap down this past earnings , I expect price to rebound going into early next year before Q1 earnings . IBM is an establish IT player making big moves in AI and 5G with over 50% institutional ownership. This swing may take a few months but I think the set-up is solid.
Entry : I have an alert set at 124.19, but my buy zone is highlighted in green on the chart and I will add at the white line shown.
Exit : Sell when the gap closes before next earnings (do-not hold into next earnings ).
Good luck!
$IBM with a Bearish outlook following its earnings #Stocks The PEAD projected a Bearish outlook for $IBM after a Negative Under reaction following its earnings release placing the stock in drift D with an expected accuracy of 81.82%.
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IBM an opportunityfor long-term investors???IBM :125
Market cap: 112 B
P/E:23
Dividend Yield: 5.21%
Currently trading at the bottom of a bullish regression channel (-3,+3).
In the past, it touched this level and each time bounced back +50%..!
The fundamental fair value estimation is 142-172 USD/share which is very likely to happen in the next trading year.
However, in the past 5 years, IBM showed that it could easily slip to 90-100 USD/share and no matter how good this company is, The price pattern says there will be better opportunities to buy IBM in the next few months!
Best,
Moshkelgosha
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IBM | Fundamental Analysis | Must Read...IBM shares fell nearly 10 percent to a seven-month low on Oct. 21 after the tech behemoth released a weak Q3 report.
IBM's revenues rose just 0.3 percent from a year earlier to $17.6 billion, $190 million less than forecasts. But excluding divestitures and foreign exchange rates, the company's revenues were down 0.2%.
Excluding the impending Kyndryl spin-off, IBM's revenue was up 2.5% in the period. Excluding divested businesses and foreign exchange rates, "excluding Kyndryl" earnings were up 1.9%.
IBM's GAAP earnings, which include Kyndryl spin-off expenses, fell 34% to $1.25 per share. Non-GAAP earnings, which exclude those expenses, still fell 2% to $2.52 per share, but beat forecasts by one penny.
IBM's performance was unimpressive, but it was in line with the outlook the company presented at an investor briefing in early October. Did investors exaggerate IBM's disappointing third-quarter report and create a new buying opportunity?
As in previous quarters, IBM reported third-quarter earnings in five main segments: cloud and cognitive software, global business services, global technology services, systems, and global finance.
IBM's cloud and cognitive software revenues grew thanks to double-digit growth in its cloud-related business, which offset low growth in its applications business and lower revenues in its transaction processing business.
The global business services segment profited from strong demand for cloud services, consulting, application management, and global technology services.
However, the Global Technology Services division weakened again, as weak growth in cloud services could not offset the continued decline in the Managed Infrastructure Services segment, which will be taken out by the Kyndryl spin-off.
The company's systems division struggled because of cyclically declining sales of IBM Z and Power systems, and financing revenues declined amid lower demand for financing services and slow sales of used equipment.
Once again, IBM's strengths failed to offset vulnerabilities, and investors were left attempting to find positives in lackluster reporting segments. However, this may all change as the "old" IBM ceases to exist.
After IBM spins off from Kyndryl next week, it will present four new reporting segments: consulting (29% of continuing operations revenue in 2020), software (42%), infrastructure (25%), and finance (2%).
IBM thinks these four segments will make it easier for investors to track the expansion of its faster-growing businesses.
IBM expects the software segment, which includes Red Hat and other hybrid cloud and artificial intelligence services, to be a major growth driver.
It also probably anticipates a streamlined consulting segment to better stand up to faster IT services and consulting companies, such as Accenture and Globant.
IBM's infrastructure business, which includes the legacy systems business as well as other hardware products and services, is likely to remain underperforming. However, IBM's earnings outlook suggests that the company will focus on streamlining its business and cutting costs to improve margins.
IBM believes that after the Kyndryl spin-off, it will deliver "sustained mid-single-digit revenue growth" from 2022 to 2024.
The company believes this growth to be driven by the expansion of hybrid cloud and AI services that can be integrated with public cloud platforms such as Amazon Web Services (AWS) and Microsoft Azure.
IBM probably realizes that it is too late to catch up with AWS and Azure in the public cloud market, but it can still use its large enterprise customer base and Red Hat's open-source software to develop services for the hybrid cloud, which sits between private clouds and public cloud services.
IBM investors will get Kyndryl stock next month. If they keep both shares, they will initially receive a combined dividend equivalent to IBM's current dividend, but then both companies may reduce their payouts.
It would seem that IBM investors should sell their Kyndryl stock immediately since the latter would likely have difficulty keeping up with companies like Accenture, but hold onto their shares of a "renewed" IBM to see if its plans to get out of the crisis work.
Nevertheless, today is not a good time to buy IBM stock. Right now, the stock may seem cheap at 12 times forward earnings, but the company still faces stiff competition from Amazon and Microsoft, which are expanding their public clouds in a hybrid market, and an unstable infrastructure business could derail growth in its software and consulting business.
Investors should wait for IBM to complete its spin-off and for results to improve for a few quarters before believing that the tipping point has arrived. Until then, they should buy other blue-chip stocks, not Big Blue.