IBM hits new highs

Article Excerpt

IBM $118 (New York symbol IBM; SI Rating: Above average) is trading at its highest levels since 2001, despite the market’s overall weakness, on the strength of strong results in the latest quarter. Sales rose 8.6% in the three months ended June 30, 2007, to $23.8 billion from $21.9 billion. Earnings rose 11.8%, to $2.3 billion from $2 billion. Earnings per share excluding unusual items rose 15.4%, to $1.50 from $1.31, on fewer shares outstanding from share buybacks. IBM is the world’s biggest supplier of computers and information processing services. The company’s shift over the past few years into higher-margin computer services and software is paying off. Its high research spending ($1.5 billion or 6.5% of sales in the latest quarter) will let it keep adding profitable new products. IBM is still a buy. buy…