Analysis says IBM's common and mundane qualities make investors happy

Beijing Time January 21 News, although IBM rivals have recently been hit by unexpected quarterly profit forecasts, a lot of management shocks and a dramatic change in corporate strategy, IBM, the "Blue giant", has avoided bankruptcy 19 years ago, according to a Reuters analysis. has been the technology industry to maintain a good operating time the longest company.

Of course, IBM still lacks the blockbuster factor. In fact, in the entire technology industry, IBM is like vanilla for ice cream, has been very common and ordinary. But in terms of the whole business world, mediocrity means a reliable factor. It is in this ordinary and ordinary nature that IBM has grown into one of the few companies that analysts and investors rely on, and that analysts and investors can rely on IBM to achieve quarterly value potential.

Chris Ambrose, an analyst at Gartner, a market research firm, Chris Ann Mu Bolos, said: "IBM's impression is that once it has a strategy in place, it will stick to it and never change its direction easily." According to Chebilly Serafi, an analyst at FBN Nomura, shebly Seyrafi, responsibility, insistence and predictable revenue are all necessary factors for the reliance of grey IBM. Chebilly also commented: "IBM's 90% of its profits come from its services and software businesses, which will also have higher interest rates." IBM was able to implement the bottom line strategy well, including buying back shares, even if they failed to achieve the highest goal. ”

For years, IBM's reputation has been better, and some of its peers have had some problems. Oracle, the software maker, for example, had once shocked investors last month, and the company's quarterly results were unusually short of expectations. Oracle, like IBM, also benefits from stable and predictable long-term contracts, unlike IBM, whose executive power has been a subject of investor scepticism.

According to Richard Davis, an analyst with Canaccord, a market-research firm, some companies ' performance is not expected to be related mainly to the specifics of the companies because "some buyers have been waiting for new hardware upgrades, and in the software sector, These companies are lagging far behind the trend in cloud applications.

IBM's rival, Hewlett-Packard, has been adjusting its PC strategy and has struggled to hit the downside of a drop in PC shipments. In addition, HP has more exposure to the European market than IBM, but IBM's influence in emerging markets is stronger than HP's. Brian Marshall, an analyst at ISI, said: "IBM has effectively used mergers and acquisitions to expand its influence in the strategic end market, and has broadened its customer size and increased business growth." "In addition, IBM's one big advantage is that it keeps the management stable." IBM has been avoiding a high level of turbulence, and HP has been plagued by this problem, for example, in the recent short period of time, HP has fired three consecutive chief executives, in contrast, IBM is rarely the case.

"Continued executive power has become a hallmark of IBM's management, and there was no sign of disruption and instability at IBM when the former chief executive, Sam Palmisano, Palmisano power to the new chief executive, Rometty Ginni Rometty," Marshall said. Instead, the balance over the calm was completed. ”

In addition, Cisco, the tech giant, has gone too far into consumer products, ignoring its core power, which is now being questioned by investors who doubt it will be hard to reinvent its former glory.

The course and goal of innovation

Since its inception in June 1911, IBM has also undergone some significant bold strategic shifts, even announcing the spin-off of its PC business in 2004, focusing on solutions based on software and technology-related business issues.

IBM also developed a five-year strategic plan in 2010, which is currently undergoing its second year. The core of IBM's plan is to promote the growth of data analysis business, cloud computing and emerging markets. In addition, IBM is planning to achieve a target of $20 per share profit by 2015. While the current macroeconomic situation in Europe remains worrisome, IBM expects its earnings to be at least $14.85 per share this year, with the diluted profit of $13.44 per share in 2011.

According to Ann Mu Bolos, IBM, although also selling products, but this sales is much lower than the software, technology and services provided by the number, and in fact, it is these software, technology and services to help the industry solve many problems.

Of course, IBM's offerings are different from GE's, such as IBM's focus on only one area, the IT sector, but in this area, IBM's portfolio is all-encompassing, from analyzing data to helping cities manage traffic.

The analyst Marshall also called IBM "the technology industry's most protective company, it is also a safe haven in times of trouble, because half of IBM's sales revenue comes from service businesses, which are often highly replicable, repeatable and often linked to long years of contracts. (Niuniu)

(Responsible editor: The good of the Legacy)