Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, May 14, 2010

Article Excerpt

INTERNATIONAL BUSINESS MACHINES CORP., $131.19, New York symbol IBM, aims to double its earnings to $20 a share by 2015. To achieve this goal, IBM will expand in developing markets like Russia, India, Brazil and China. These countries are attracting more business activity as their economies grow. That’s increasing the need for IBM’s mainframe computers and technical expertise. By 2015, IBM aims to get 25% of its revenue from these markets, up from 19% last year. The company will also continue to spur its growth by purchasing related companies and assets. It will probably spend $20 billion on these purchases through 2015. That’s equal to 12% of its $170.4-billion market cap. IBM is particularly interested in software firms whose products analyze large amounts of data, such as customer buying habits. Identifying trends from this data helps IBM’s clients make better business decisions. The company already makes analytical software, but wants to expand its presence in this field. That’s because specialized software like…