International Business Machines Corp. (IBM) Stock is a Falling Knife for Investors: Argus

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2015 is coming out to be a worst possible year for International Business Machines Corp. (NYSE:IBM). The stock is tumbling and experts are mostly giving the blue giant a HOLD or SELL rating. The company is trying to increase its Cloud business in the Asian market, but it is downsizing its legacy core business. An article of 247WSJst quoted an investment firm Argus, which has given a Hold rating for International Business Machines Corp. (NYSE:IBM), and maintained the position that International Business Machines Corp. (NYSE:IBM) has nothing to offer for investors. The company has a risky position. It is still trying out new things in a marketplace where there are a number of competitors are there to race. The source said that even though Warren Buffett, the finance and stocks guru is still buying more International Business Machines Corp. (NYSE:IBM) stocks, almost all the other investors are backing off from the company.

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Argus said that International Business Machines Corp. (NYSE:IBM)’s speed of transition is very slow. It is more like a ‘falling knife’, unless and until the investors have a clear idea about what is the company’s strategy to move forward. The source also said that investors are now getting impatient and they may soon ask International Business Machines Corp. (NYSE:IBM) to divest its services business, which is draining all the revenues and resources.

International Business Machines Corp. (NYSE:IBM) is likely to face legal issues in Asia. The core equity value is just $11.9 billion, down from double of this figure in just one year. The increasing competition in hardware and services business depletes the light of hope for International Business Machines Corp. (NYSE:IBM).

Warren Buffett’s Berkshire Hathaway hold around 70 million International Business Machines Corp. (NYSE:IBM) shares.

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