Thread regarding IBM layoffs

IBM Market Cap

$135.21B as of today Fri 9/29/2017.

  • Keep in mind that $116B was invested in share repurchases since 2007.

  • Assuming a 2% inflation and average 11.5B per year repurchase, the present value of 116B is about 125B.

  • Therefore, current market cap (135B) minus repurchases (125B) yeilds about $10B in true value... Here is my claim of the day:

-IBM is a $10B company....

The people who destroyed this company while syphoning out hundreds of millions for themselves should be tried and convicted!

For some background see @Pv8EMtK

by Anonymous
| 1265 views | | 2 replies (last October 2, 2017) | Reply
Post ID: @OP+Pvr60yk
Comment! It's anonymous!

2 replies (most recent on top)

The logic in this analysis is flawed. The issue is how could the $116b (and the money spent on acquisitions) been invested to improve shareholder value. IBM's market cap would, arguably, largely be the same even if the $116b had been put in the bank, let alone if it had been invested in R&D (or heaven forbid Apple/Alibaba/Google/Facebook etc). The trouble with Executive pay being rewarded with increasing EPS, is that Executives will do anything and everything to increase short term EPS at the expense of long term revenue and earnings growth. Be careful what you wish for with performance based remuneration.

by Anonymous
| | Reply
Post ID: @3bwx+Pvr60yk

The loss of shareolder value and drop in revenue is even more stark if you factor in the billions spent acquiring companies in a futile attemot to buy relevance, technology and revenue

by Anonymous
| | Reply
Post ID: @2pzh+Pvr60yk

Post a reply

: