Why Buy IBM Shares? Watson
IBM (IBM) is firing on all cylinders lately and its share price reflects its staying power by closing above $200 a share this week. IBM's super computer Watson is going to work for Citigroup (C) and its why the Masters want in now.
Last week we recommended buying IBM shares in 3 Stocks to Buy at 12 Month Highs. IBM was trading just under its 12 month high and this week it made the $200 roll hitting $201.19.
Citigroup (C) is hiring Watson to do what no man can do. The AWESOM-O like computer will help analyze customer needs and process financial, economic and client data to advance and personalize digital banking.
Watson already does work for its health-care clients WellPoint Inc. and Seton Health Family by analyzing data to improve care. IBM executives say Watson’s skills -- understanding and processing natural language, consulting vast volumes of unstructured information, and accurately answering questions with humanlike cognition -- are also well suited for the finance industry.
Watson may add $2.65 billion in revenue in 2015, adding 52 cents of earnings per share, Ed Maguire, an analyst at CLSA in New York, estimated in a November research note (source: bloomberg via fa-mag.com)
MASTERY Bottom line:
Need another reason to buy IBM?
Watson is your answer.
Mastery expects IBM to continue to prosper in 2012.
Our 12 month target price for IBM is now $250.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- THe EViDeNCe... | ZeroHedge
- New Technology Could End the Debate Over Pipeline Safety | Financial Sense
- Recovery? 3 "Uncomfortable Truth" Charts | ZeroHedge
- The Hard Life Of The First American | ZeroHedge
- Keynesian Central Banking Is An Economic Scourge: More Evidence From Japan | ZeroHedge
- More Sanctions: Europe Will Ban Purchase Of Russian Bonds; However Russian Gas Exports Remain Untouched | ZeroHedge
- SKiLLeD LaBoR... | ZeroHedge
The most relevant financial news and articles from the Internets
- Pre-Open... | StreetInsider.com
- The Best Business Schools of 2011 | BusinessWeek
- New CEO Of Troubled UK Supermarket Tells All 500,000... | Business Insider
- Why Mobile Payments, Not A Bigger Screen,... | Business Insider
- Putin urges Europeans to have 'common sense... | Business Insider
- Notable Mergers and... | StreetInsider.com
- Japanese Porn Queens Raise Thousands Of Dollars For Aids... | Business Insider