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IBM trade ideas

IBM:FULL DETAILS FUNDAMENTAL+PRICE ACTION ANALYSIS|SHORT SETUP🔔IBM just posted its best quarter in years. This tech giant demonstrated very modest overall revenue growth in the second quarter of 2021, but an expansion in its cloud computing business, driven by its flagship Red Hat, which the company acquired in 2019. For income-seeking investors, IBM is a great dividend stock right now, and the hope is that growth will be even stronger after the Kyndryl spin-off is completed by the end of this year. Here are several reasons why IBM is one of the best variants to buy right now. - IBM's cloud solution sales are too undervalued In the second quarter, IBM's total revenue rose just 3% year over year to $18.7 billion, and in the first half of the year, sales rose 2% to $36.5 billion. No big deal given the fast-paced digital age we live in, but not too bad for IBM given that it has been stuck in a steady decline for years. Hidden beneath the surface and helping IBM regain positive momentum, however, is its huge cloud computing segment, which is still noteworthy. Total cloud computing sales were up 13 percent from a year ago to $7 billion, led by cloud provider Red Hat, which reportedly grew 20 percent. In fact, Red Hat has accelerated from the pace it set last year. In fact, this strong performance of the cloud segment is the main reason IBM is spinning off its managed infrastructure segment (which we now know will be called Kyndryl). While technical infrastructure hardware is still an important segment of IT, it is not a growth area. It also offers lower profit margins than cloud software. Thus, the new IBM will focus more on its cloud business, which should help it achieve higher growth and earnings potential once the spin-off is complete by the end of this year. - A high level of free cash flow generation Of course, in the period leading up to the new cloud-focused IBM, it's primarily a dividend stock. And when it comes to dividend payments, it's all about free cash flow generation. IBM is doing well in that regard. In the first six months of this year, free cash flow was $2.56 billion, which pretty much covers the $1.47 billion paid out as dividends to shareholders. Of course, $2.56 billion is a bit less than the $3.65 billion in free cash flow generated in the first half of 2020. So what's the bottom line? First, IBM spent $1.22 billion in 2021 on one-time expenses related to setting up the Kyndryl division. Setting that amount aside, free cash flow would have increased by 4%. IBM also spent $2.87 billion on cash acquisitions this year. Since January, it has acquired nine smaller software and consulting companies to bolster its presence in cloud computing. Setting aside these acquisition-related costs, IBM would report an impressive 81% year-over-year increase in free cash flow in the first half of 2021. In other words, IBM's current dividend yield of 4.7% is a good bet right now. - Improving the balance sheet When it comes to tech giants, industry leaders (like FAANG stock) have net cash. But not so at IBM. The more than century-old company has far more debt than cash. At the end of the second quarter, the company had $7.35 billion in cash and cash equivalents and another $600 million in marketable securities, but still had $55.2 billion in debt. It's far from the nicest-looking balance sheet, but progress is evident. IBM had $61.5 billion in debt at the start of 2021, so the old tech company has reduced its obligations to bondholders by about $6.3 billion this year -- and has reduced debt by $17.9 billion since buying Red Hat in 2019. Although there's still work to be done, IBM has an investment-grade credit rating due to its strong free cash flow generation, and it can handle both dividend payments and gradual debt repayments. The sale of Kyndryl promises to be a major event for IBM later this year, but for now, it is the best dividend company for investors looking for additional income. At the time of writing, the company's stock price is up 12% this year.
NYSE:IBMShort
by FOREXN1
7
I'm no genius, but this characterizes several Weekly chartsI have looked over several charts tonight, taking a look specifically for Tickers on the Weekly with a green upweek this week. Coincidentally I had the 200 MA turned on and started noticing how Price on a lot of things really on their Weekly charts have had this problem. A problem of being stuck underneath the 200 MA for quite some time now. What is beginning to get interesting is that recently a few names like CAH, and IFF have broken through. So I went looking for a few more common interests in the blue chip world and first stop was IBM. Have a look. The 200 slope rode higher for 9 years, and has been pulling back for 6 years. We're sitting right on top of a 50% rectracement of the moving average line motion. Certainly has perked my interest for any long term ideas, and about just how much power could be behind any more selling in the market. When you consider how long IBM has been worked underneath the 200 on the Weekly, does it being to shine light that maybe we're at the start of trend in a different direction?
NYSE:IBMLong
by mikeram1971
$IBM - Head & Shoulder playing out. $133 gap fill possiblePlaying out head and shoulder. Neckline broke. $133 gap fill possible. Target 1 - $133 Target 2 - $130 ——————————————————— How to read my charts? - Matching color trend lines shows the pattern. Sometimes a chart can have multiple patterns. Each pattern will have matching color trend lines. - The yellow horizontal lines shows support and resistance areas. - Fib lines also shows support and resistance areas. - The dotted white lines shows price projection for breakout or breakdown target. Disclaimer: Do your own DD. Not an investment advice.
NYSE:IBMShort
by PaperBozz
Volatility into and on its earning day is a trading opportunityI used my biased Fibonacci channel to determine a stock major trend, minor oscillations, as well as entries/exits from trading. The Fibonacci channel is a technical analysis tool that is used to estimate support and resistance levels based on the Fibonacci numbers. It is a variation of the Fibonacci retracement tool, except with the channel the lines run diagonally rather than horizontally. The lines from the channel is used to aid in identifying where support and resistance may develop in the future. If the uptrend is expected to continue, the 100%, 161.8%, and other higher levels are potential price targets. The same concept applies to downtrends if a downtrend is expected to continue. In an uptrend, the zero-line is like a normal trendline, helping to assess the overall trend direction. If the price falls below it, it may need to be adjusted based on more recent price action, or it could signal that the uptrend is over and that the price is breaking lower. In a downtrend, the zero-line also acts like a trendline. When the price is below it, it helps confirm the downtrend. If the price moves above it, the indicator may need to be redrawn or the price is moving higher out of its downtrend. Fibonacci channels are highly subjective. The trader chooses three points they deem to be significant, yet the market may not view these points as significant and thus may not respect or react as expected to the drawn levels. One of the complaints with Fibonacci analysis, in general, especially on short-term charts, is that there are so many levels that the price is likely to reverse at or reach one of the levels. The problem is knowing which level will be important in advance.
NYSE:IBMLong
by KhanhC.Hoang
IBM 1M The history of the corporation is worthy of respectInternational Business Machines Corporation is an American electronic corporation, one of the world's largest manufacturers of all types of computers and software, one of the largest providers of global information networks. IBM owns more patents than any other technology company. The story begins in the 19th century. If you have been following us for a long time, you should notice that we decided to make a portfolio of ideas from assets in the stock market for the long term. And of course, it would have been blasphemy if we hadn't written a review of such a powerful company as IBM. The corporation has been actively developing for more than a century, making our life easier and better by introducing new technologies into it. Looking at the chart, you can name one dark period in their history - this is the beginning of the 90s, when the price of IBM shares fell to a critical $10. In the early 1990s, the mainframe market crisis began, which peaked in 1993. And you guessed it - the main developer of mainframes was the IBM corporation. In 1993 Many analysts talking about the complete extinction of mainframes just now, and about the transition from centralized information processing to distributed (although the last mainframe was turned off in 2013). In 1993, IBM posted a $8bn loss - the largest in American corporate history at the time - and it was time for drastic action. New gene. director Luis Gerstner decides to cut 20% of its employees, which is 60,000 people. It was the largest cut in American history, but helped the IBM corporation survive from 1993-1994. From 1993 to 2002, when Gerstner left the Big Blue, the company's market capitalization rose from $29 billion to $168 billion . This man is considered the savior of IBM. The next interesting period is the beginning of 2013 , then a protracted correction in the value of IBM shares began, with which the price is now trying to start going up. An interesting coincidence is that the price of Gold went into its 6-year correction also at the beginning of 2013. Such a correlation might suggest that long-term investors have so much faith in IBM that they can view their stock as a defensive asset on par with Gold?) By the way, below is our global thought in relation to Gold. So, now let's talk about the prospects that we assume looking at the chart. The maximum correction that we are now admitting is a fall to $110.50-112.50 , from which we expect a solid rise in the value of IBM shares. We consider the critical level - $180 Fixing the price above this level will open the way for a long-term growth perspective to $500-530 If the market will be negative, and the price cannot break through above $180, then unfortunately, then it will already be necessary to look towards $70 per IBM share What do you say, about such material, comes in? Share your thoughts and expectations in the comments on IBM stock
NYSE:IBM
by P_S_trade
27
IBM More Downside?This is a short-term possibly bearish post within a longer term bullish play. Last week IBM closed out with a big 4.5% drop in one day after news of the CEO resigning. But was this the cause or was something larger perhaps in the chart in play here? Well when we zoom out on the monthly chart, we see back in April this year IBM broke aggressively bullish out of the downward sloping green trendline and went straight to the 0.5 fib level around $153. What was missing on this move however, was a confirming retest of the green trendline. It appears the bulls were front runners of the price, and now the retest of the green broken trendline is still well in play. There is lots of bullish confluence where the price currently sits, however. So it will be interesting to see how IBM's price will behave both this week as well as the remainder of this new month. Right now is a decent area to nibble on a long but be on the lookout for a retest of the green trendline and keep stop losses tight as this has been a roller coaster of an asset.
NYSE:IBM
by TradeVibez
IBM bearish scenario:We have a technical figure Descending Triangle in US company International Business Machines Corporation (IBM) at daily chart. IBM is an American multinational technology company. IBM produces and sells computer hardware, middleware, and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. The Descending Triangle has broken through the support line on 03/07/2021, if the price holds below this level we can have a possible bearish price movement with a forecast for the next 9 days towards 136.99 USD. Our stop loss order should be placed at 147.50 USD if we decide to enter this position.
NYSE:IBMShort
by legacyFXofficial
1
IBM case study: Breakouts after 2500 days correctionToday, I observed the IBM chart, and I noticed this huge descending channel on the daily chart since 2013, and I saw that the price was breaking it. So, I decided to go to a higher timeframe to look for similar scenarios in the past, and yes!!!!!, having data since 1985 allowed us to see how this type of situation evolved in the past. Here are my conclusions First Conclusion: Consolidations last between 2500 and 3000 days. That's a lot... Second Conclusion : After we have a clear breakout (always using the most external trendlines of the consolidation), the price makes small corrective movements on the edge of the structure with a duration between 150 - 300 days. The key aspect here is that we can see an ABC pattern all the time. Third Conclusion: Based on the two scenarios we have, we can see that in the second one, we had a failed setup on the first consolidation. However, the second one worked pretty well. "Be open to failed setups, and trade again if the 150 - 300 days corrections come again. Fourth Conclusion: The bullish movements that come after these consolidations (the ones after the breakout) goes between 90% to 500% So what is the idea with this? The idea is that we can create a scenario where we know what we are waiting for before trading. In this case, we want to see a breakout of this 3000 days consolidation followed by a small correction around 150 - 300 days. If that happens, we will trade the breakout of it, and we will aim to have an open setup for 1 to 2 years. We think that the risk-reward ratio we can have on these types of setups is above 7 to 1. Using 2% of the capital on a setup like this can provide a 14% return over a year or two (ONLY risking 2% of your capital). The post's main objective is to show that you can create trading maps on any asset with the correct amount of past data, study previous scenarios and get ready for a current situation. Thanks for reading!
NYSE:IBMEducation
by ThinkingAntsOk
3