In April 18, 2012, we said:
“In this case, the dividend has been rising much faster than the stock price, among the many reasons that Buffett might be interested in a technology stock near an all-time high. Now, just imagine what the stock will look like after falling to a 52-week low.”
On July 23, 2015, we said of IBM:
“We think that a value investor would have fun pouring over the data to determine the actual value of IBM. Gould’s Speed Resistance Lines [SRL] indicate that the conservative downside target for IBM is $130. However, we think a process of accumulation at the current price, and below, is a prudent long-term strategy.”
Now that Warren Buffett is no longer a selling point for potential new buyers, what do we think of IBM?
For the time being, IBM is reasonably priced for a retest of the 2012 peak in the Altimeter. The stock price would be approximately $362. Keep in mind that the stock still has the prospect of retesting the prior low at $120. The 2008 low of $80 is a consideration but not expected at this time.