I see Warren Buffett has now sold all of his historic holding in IBM - why? https://www.investopedia.com/news/berkshire-hathaway-has-exited-ibm-buffett/
Mr Buffett has cast a very dark shadow over this one - one to avoid for now if you are risk averse. If you like contrarian bets then time to start picking them up as nobody else will touch them at the moment.
I cant help but think that IBM will come back to life at some stage - yes we know the revamp is taking longer than expected and will likely see more write-offs than many had hoped BUT progress is being made
The graph is suggesting there could be a little more downside before this one bottoms out - I wonder if some holders are following Buffett's lead and bailing out, leaving an overhang in the market?
Looks like $139ish will be the next support level - if it crashes through there we could see a sharp short term sell-off - contrarian investors will be pricking their ears up in that scenario!
This is stuck in an extrememly tight trading range, $140 to $150, and until we see a break either way this is probably one to leave. However, that said, if the restructuring goes to plan then the future IBM will be a very different animal from the one we all know and love. I wonder if they have thought of changing the company's name so they can finally leave the past behind them?
The turnaround in the company's direction and fortunes is obviously not going to plan. Personally, I think there will be a time to buy into the shares and the ongoing market volatility could present a perfect moment. Watch and wait, keep your powder dry!
The road to recovery was never going to be smooth and it is certainly working out that way with IBM! https://www.theregister.co.uk/2018/10/17/ibm_q3_2018_expectations/ If we see another large sell-off it could be an interesting recovery play to buy and tuck away.
If you believe IBM is a long term recovery play - or more likely, the sum of the parts is greater than the market cap - now is the time to start picking some up. Everything seems to be against the company at the moment and there is every chance we may see further downside. Might we hit $100 with a big last flick of the sellers tail, sell-off?
