Mad Dog 21/21: Preoccupy Wall Street
October 17, 2011 Hesh Wiener
IBM has almost always been a darling of Wall Street. It is Big Blue, the bluest of the blue chips. This year IBM shares have risen more than any of the other 29 components of the Dow Jones Industrial Average; they currently sell for about 13 times earnings. Hewlett-Packard is also a DJII component. It has significantly higher revenue than IBM. For the past five years it has grown faster, too. It sells a larger number of servers than Big Blue. But its name is mud on Wall Street. HP’s price/earnings ratio is half that of IBM. How come? Looking |