IBM's (IBM) struggles continue: the second-quarter results show no improvement. While the company maintains the full-year guidance, investors are growing continuously more impatient with the lack of operational improvements following Big Blue's loss of its vote of confidence from the Oracle of Omaha.
As a result, investors have little to look forward to other than solid cash flow generation and a modest earnings multiple. Promotional management, continued declines in sales and a potential for tax rates to increase push up earnings multiples from today's low multiples. For all of these reasons, and the massive underperformance versus its peers, I am not buying this dip yet.
