In Dec 2011 IBM released its “Next 5 in 5” forecast on innovations that will change our lives within the next 5 years. It looks and sounds unbelievable, sometimes next to fantastic. However, it deserves attention.
Wise investors know that a good forecast can help to make right investment decisions, thus allowing them to make “big bucks”. So let’s look at what should investors pay attention to according to IBM’s forecasts.
IBM: A Respected Forecaster?
According to Eugene Olkhovsky, ’s leading expert in financial markets, this year IBM is celebrating its 100th anniversary. IBM’s role in developing computer technologies can hardly be overestimated. The company’s official motto is “Think!” It was IBM that developed an HDD, an FDD and a mainframe (a super computer).
IBM was honored to become the leading advisor and forecaster in the field of computers, hi-tech and innovation technologies. 50% of IBM’s net income comes from consultations. History shows that the company’s forecasts are 80% accurate (i.e. not all of them come true).
For example. 5 years ago IBM forecast a mobile revolution, saying that mobile devices would be dominating the market as universal, multifunctional devices with a wide range of functions. Now we can say that the forecast has come true.
Tips For Investors: Next 5 in 5
As for the latest forecast itself, we think there is no point in quoting it because you can read the article and even watch the video by visiting IBM’s official website. The forecast is really amazing and promising for investors.
What should investors know about IBM?
According to the Department of Portfolio Investments of , IBM is the world’s largest computer manufacturer. IBM is headquartered in New York. According to Wikipedia, “the company manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology”. It was founded in 1911. Today almost 100% of the company’s stock circulates in the market.
In Q3 2011 IBM increased its income. The net income for Jan – Sep 2011 is equal to $26.2B, which is 8% more than last year’s figures. However, the income growth was much lower than expected, mainly due to negative economic tendencies.
The earnings per share (EPS) increased by 15% up to $8,48 per share.
Moreover, today the company is betting on emerging markets. This year these markets have increased the consumption of IBM products by 19%, which accounts for 23% of IBM’s total income.
Besides, during the period of Jan – Sep the company earned $5.8B on the sales of its own software products. The sales boosted by 13% year-over-year. IBM’s hardware sales reached the level of $4.5B, which was a 4% increase year-over-year.
The mentioned data suggest higher EPS – an increase from $13,25 to $13,35 per share. The following tendency corresponds to the company’s 5-year plan. It is expected that by 2015 IBM’s EPS will reach $20 per share.
