IBM builds its expertise

Article Excerpt

IBM, $219.73, is still a buy. The company (New York symbol IBM; Shares outstanding: 921.1 million; Market cap: $202.4 billion; TSINetwork Rating: Above Average; Dividend yield: 3.0%) often buys other companies to enhance its expertise. It cuts the risk of using acquisitions to expand by targeting smaller firms that are easier to absorb. For example, IBM has agreed to buy Accelalpha. Based in Bellevue, Washington, this firm helps businesses implement and manage their applications that run on the cloud platforms of software developer Oracle Corp. (New York symbol ORCL). The purchase price has not yet been disclosed. This acquisition expands IBM’s Oracle consulting expertise in supply chain and logistics, finance, enterprise performance management and customer transformation. The acquisition also builds on IBM’s nearly 40-year collaboration with Oracle. IBM is a buy. buy. …