International Business Machines Corp.

INTERNATIONAL BUSINESS MACHINES CORP. $161 (New York symbol IBM, Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 985.0 million; Market cap: $158.6 billion; Price-to-sales ratio: 1.8; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.ibm.com) has developed a new computer chip with four times more transistors than current models by using a silicon-germanium base instead of pure silicon. This innovation will greatly speed up computers while using much less power.

The company has sold most of its chipmaking operations over the past few years, so if this technology becomes commercially viable, IBM will license it to other manufacturers. Faster chips would also make the company’s analytics software perform better.

IBM is a buy.

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MONSANTO CO., $105.21, New York symbol MON, develops and sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. It also sells weed- and pest-control products. The company reported better-than-expected quarterly earnings this week, but a weaker forecast for the full fiscal year caused the stock to fall 7%. In the third quarter of its 2015 fiscal year, which ended May 31, 2015, Monsanto earned $1.1 billion, up 33.0% from $858 million a year earlier. Earnings per share gained 47.5%, to $2.39 from $1.62, on fewer shares outstanding. That easily beat the consensus estimate of $2.07....

INTEL CORP., $31.84, Nasdaq symbol INTC, has agreed to acquire Altera Corp. (Nasdaq symbol ALTR). Altera specializes in chips called field programmable gate arrays (FPGAs) that users can program to perform specific tasks. This helps make server computers faster. The company focuses on chip design; it outsources manufacturing to other firms, including Intel....

Whenever IBM seems to lose momentum, it has the flexibility to adapt to fast-growing businesses, fortify its dividend and reward investors.

APPLE INC., $128.95, Nasdaq symbol AAPL, sold 61.2 million iPhones in its latest quarter, up 39.9% from 43.7 million a year earlier. That’s largely due to strong demand in developing countries. For example, Apple sold more iPhones in China (including Hong Kong and Taiwan) than in the U.S. As a result, the company’s earnings jumped 32.7% in its fiscal 2015 second quarter, which ended March 28, 2015, to $13.6 billion from $10.2 billion a year earlier. Per-share profits gained 40.4%, to $2.33 from $1.66, on fewer shares outstanding. That easily beat the consensus estimate of $2.17. Sales rose 27.1%, to $58.0 billion from $45.6 billion, also beating the consensus forecast of $56.1 billion....

IBM’s shares fell from $190 in October 2014 to $150 in December. That’s because many businesses are shifting to cheaper cloud computing platforms and spending less on IBM’s mainframes and consulting services. That has forced it to abandon its ambitious 2015 earnings target of $20.00 a share. But the company has a long history of shifting from unprofitable businesses to fast-growing ones. And we feel its new plan to focus on cloud computing and analytics software will spur its earnings for years to come. To top it off, IBM’s strong balance sheet gives it lots of room to keep buying back shares and raising its dividend. INTERNATIONAL BUSINESS MACHINES CORP. $165 (New York symbol IBM, Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 985.0 million; Market cap: $162.5 billion; Price-to-sales ratio: 1.8; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.ibm.com) traces its history back to 1911. Today, it’s one of the world’s largest computer companies, with operations in over 175 countries....

INTERNATIONAL BUSINESS MACHINES CORP. $165 (New York symbol IBM, Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 985.0 million; Market cap: $162.5 billion; Price-to-sales ratio: 1.8; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.ibm.com) traces its history back to 1911. Today, it’s one of the world’s largest computer companies, with operations in over 175 countries. In the past few years, IBM has moved away from making computers to designing entire systems and managing them for businesses and government agencies. It provides these services under long-term contracts, which gives it predictable revenue streams. In 2014, computer services supplied 59% of the company’s revenue.

Meanwhile, IBM continues to build up its software business, which supplied 28% of its 2014 revenue.

Last year, the company sold its low-end server business to China’s Lenovo Group for $2.1 billion in cash and Lenovo shares.

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PLEASE NOTE: Our next Hotlines will go out on Friday, April 10, 2015. PHILIPS ELECTRONICS N.V. ADRs, $29.30, New York symbol PHG, is selling most of its light emitting diode (LED) components and automotive lighting division (which is changing its name to Lumileds) to private equity firm GO Scale Capital. Under the deal, Philips will sell 80.1% of Lumileds for $2.9 billion. That’s equal to 11% of its $26.6-billion market cap (or the value of all of its outstanding shares). Philips expects to complete the sale in the third quarter of 2015....

PLEASE NOTE: Next week, Wall Street Stock Forecaster will reveal its #1 pick for 2015. Don’t miss this unique opportunity to profit. INTERNATIONAL BUSINESS MACHINES CORP., $155.87, New York symbol IBM, reported better-than-expected earnings this week. But that’s mainly due to cost cuts, as demand for the company’s mainframes and computer services has weakened. In the three months ended December 31, 2014, IBM earned $5.8 billion, down 13.0% from $6.65 billion a year earlier. Per-share earnings fell 5.7%, to $5.81 from $6.16, on fewer shares outstanding....

TIM HORTONS INC., $84.91, New York symbol THI, shareholders will vote on the friendly takeover offer from BURGER KING WORLDWIDE INC., $34.81, New York symbol BKW, on Tuesday, December 9, 2014. If the deal is approved, Tim Hortons investors will have a number of options: They can sell their shares on the New York exchange and receive the current trading price of $84.91 (less brokerage commissions). If they don’t do that, they can opt for one of the three choices below by notifying their brokers no later than 5:00 p.m. ET on Tuesday, December 9, 2014....