Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, November 18, 2011

Article Excerpt

INTERNATIONAL BUSINESS MACHINES CORP., $185.24, New York symbol IBM, rose initially in response to news that Warren Buffett’s Berkshire Hathaway Inc. (New York symbol BRK.A) now owns 5.4% of IBM. However, the stock fell 1% for the week. This is Mr. Buffett’s first major investment in a technology company. IBM’s revenue and earnings growth has slowed recently, due to the weaker global economy, but its long-term outlook remains strong. The company continues to benefit from strong growth in emerging markets, like Russia and Brazil. Strong business growth in these countries is spurring demand for reliable computer services. By 2015, IBM feels these markets will supply 30% of its revenue, up from 23% now. The company is also expanding its software business, mainly through acquisitions. That adds risk, but the companies IBM is buying are adding to its expertise in fast-growing fields like cloud computing. As well, owning its own software lets IBM avoid paying licensing fees to other technology firms. IBM is…

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