Markets

A Blue-Chip Buy

International Business Machines Corp. (NYSE: IBM ) - This bluest of the information technology blue chips is expected to increase revenues 5% this year and another 5% in 2011.

S&P estimates that IBM had an order backlog of $129 billion at the end of June, and is flush with cash, which it can use for acquisitions.

Earnings are estimated at $11.50 for 2010 and $12.60 for 2011, and S&P has a fundamental 12-month target of $161 for the stock.

Technically, the stock broke from a compound top in mid-September at $132 with a target of $150 within three months.

For you traders out there, the IBM Jan 135 Calls are one on the 6 Top Options Trades for Q4 .

IBM Stock Chart

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If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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