Go Jim Go! This maybe better than the Dallas vs Patriots game...
2022 is going to be one he-l of a year with a 1B restructuring in Q1!
https://www.cnbc.com/2021/10/18/short-seller-jim-chanos-reveals-bet-against-ibm-ahead-of-earnings-this-week.html
9 replies (most recent on top)
@1etf+1dnMdAl4 overpaying for acquisitions is because IBM does not have a culture at retaining and nurturing technical talent. So incompetent managers just let the churn burn until it gets so bad on purpose the execs can increase their bonus by doing mini acquisitions to buy talent who would never apply in the first place. Look at IBM Consulting (was GBS) this year!!
If your coming to IBM, better be through an acquisition!
Jim, ya think? You could add short term thinking, poor strategy, and overpaying for acquisitions to your thesis... But yes, this downward play has alot more to ride.
IBM executives are CHEATS!!!Whatever they can do or say to line their pockets!!! Hate this company!!! The cheating in my own department left me no choice, I QUIT!!!
~3.5 minute video.
He was whistling the same tune 10 months ago, so he's not wavered on his convictions --
https://www.youtube.com/watch?v=0bDSsC5RpoA
QUOTE OF THE WEEK:
"IBM is a good example [that] the greatest scams are hiding right in plain sight through the use of pro-forma accounting" - Jim Chanos
Noted short-seller Jim Chanos, of Kynikos Associates, came out swinging against IBM (NYSE:IBM) on Monday, with some harsh words for the technology industry giant just two days ahead of its upcoming third-quarter report.
Speaking on CNBC, Chanos called out what he called "just more financial engineering" on the part of IBM (IBM) when it comes to the company's earnings estimates for its fiscal year. Chanos said he was particularly troubled by IBM's (IBM) use of pro-forma accounting to set its earning estimates, which the company has forecast to reach $11 a share this year.
However, Chanos said that because of pro-forma accounting--a practice of a company reporting earnings excluding one-time or non-recurring items--he believes IBM (IBM) is likely to earn barely half of what it has estimated to earn.
"IBM's supposed to earn $11 [a share this year]," Chanos said, in an interview with CNBC's Scott Wapner. "[But], for the trailing 12 months, they’ve earned less than 9 dollars. The really fascinating thing, from our perspective, is if you look at IBM's operating earnings, and add their IP [intellectual property] royalty stream, and tax it at a normal 21%, the actual earnings are $6 [a share]."
If that wasn't enough, Chanos added, "Sometimes The greatest scams are hiding right in plain sight."
"Financial Engineering", no news there...
Its behind a paywall poster! We need content...
Here is the deal. IBM is an expert at Financial Engineering!
Executives layoff, offshore jobs, and re-org every quarter to keep the stock from sinking.
Jim should do this when there is more of a chance for a stock market correction in 2022.
Can you post what Jim said?