IBM $186 - New York symbol IBM

IBM $186 (New York symbol IBM; Shares outstanding: 1.2 billion; Market cap: $223.2 billion; TSINetwork Rating: Above Average; Dividend yield: 1.6%) continues to expand its software business.

In early December 2011, the company agreed to buy DemandTec Inc. (Nasdaq symbol DMAN), which makes software that retailers and consumer products makers use to analyze their customers’ spending habits. This information helps them predict consumer behaviour and quickly adjust their prices.

Adding DemandTec will also enhance IBM’s expertise in cloud computing. That’s where data and software are kept on central servers. Users then access this information over the Internet through a variety of devices

IBM will pay $440 million for DemandTec when the sale closes in the first quarter of 2012.

IBM is a buy.

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