Not Enough Incentives To Roll The Dice On International Business Machines Corp (IBM): Charles Payne

International Business Machines Corp. (NYSE:IBM) has tripped almost $20 on the fundamentals as the company’s stock price fell some 11.3% through the last month. Many thought that this is only the October dip, but as the shares haven’t gotten any more valuable eyebrows have been raised. FBN’s Charles Payne dwelled into the matter a bit to find some peculiarities with International Business Machines Corp. (NYSE:IBM) that were responsible for the drawbacks.

“Here’s the problem with International Business Machines Corp. (NYSE:IBM): they’re just not staying abreast with the business. The clouds’ situation, management, they’re pretty stubborn with sticking with some of the hardware stuff the street doesn’t want to mess it with, inconsistent execution. I’m a little worried about this stock,” related Charles Payne.

5 years ago International Business Machines Corp. (NYSE:IBM) managed an outstanding comeback from the lows of little more than $50 in 2002 after a price above $120 3 years previous to that, according to FOX. Thus, it’s not that unlikely that we might see a positive turnaround for the hardware manufacturer, but there’s also the fact that few get more than one lucky lottery ticket. Leaving speculation aside, for the short term perspective there’s little that can push International Business Machines Corp. (NYSE:IBM)’s price upwards.

“Now, here’s a thing. February, for the fiscal year next year the street is looking for $16.83. Three months ago they were looking for almost $20 a share. I don’t like to risk a word on this one just yet. Technically, it can go down to $143. That’s your next major support point so you got a lot of risk to the downside. Not enough incentive to roll the dice on this one,” said Charles Payne.

For those still having faith in the company, the price might appear pretty cheap, in fact it may actually be the case. Nevertheless, it’s not that advisable to bet against the fundamentals even if we’re talking about International Business Machines Corp. (NYSE:IBM).

Disclosure: none
Free Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.