It may sound borderline unbelievable for new investors in International Business Machines (IBM), but a review of the last two recessions highlights the likelihood of a sub-$100 stock price if the global economy slows dramatically. The massive share price reversal pattern of 2017, from everything looks great in February to something may be terribly wrong in June, should have investors worried. I wrote a story on weakening old-school bellwether trading activity in April, mentioning IBM’s financial troubles.
IBM’s lackluster sales growth since 2008 has been well documented on Seeking Alpha and elsewhere. The company has reported 20 straight quarters(5 years) of revenue decline from the previous year’s equivalent number.