The great IBM debate

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On Monday, I rejoined CNBC’s “Power Lunch” to participate in a bull vs. bear debate on IBM. If you’re a regular blog reader, you know where we stand…we’re bullish.

Investors need to know two things about any company they invest in: what their timeline for investing is and if things within the company are going to improve. We are long-term investors and look three to five years down the line, we think given IBM’s focus on moving clients to the cloud coupled with their emphasis on Watson and what it can do in the world of big data, they have a good market strategy and are holding on.

IBM is a moving target, they continue to refresh their product offering and that does mean getting rid of some high-revenue and low-margin business. You have to follow the margins and since 2010 they have been improving, so that’s what we’ve been looking at and why we are keeping IBM.

Click that image below to view the segment!

KimForrest CNBC10.19