Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, October 1, 2021

Article Excerpt

INTERNATIONAL BUSINESS MACHINES CORP., $143.32, New York symbol IBM, remains a buy. IBM is one of the world’s largest computer companies, with operations in over 175 countries. The company has announced more details regarding the spin off the Managed Infrastructure Services unit of its Global Technology Services division. That legacy business helps corporate and government clients manage their datacentres. The new firm—called Kyndryl Holdings Inc.—will trade on the New York exchange under the “KD” symbol. IBM will hand out 80.1% of its Kyndryl shares to its own investors as a tax-deferred special dividend by the end of 2021. It plans to dispose of its remaining shares within 12 months of the spinoff. Kyndryl generated revenue of $19.4 billion in 2020, down 4.4% from $20.3 billion in 2019. It lost money in 2020 due to one-time charges. However, without those items, it probably earned $378 million. The new company will have roughly $1 billion in debt (net of cash it holds). Kyndryl’s outlook is positive given the…

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