Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Monday, June 18, 2007

Article Excerpt

INTERNATIONAL BUSINESS MACHINES CORP. $105.33, New York symbol IBM, has agreed to pay $745 million for Telelogic AB of Sweden. The price is equal to 40% of the $1.8 billion or $1.21 a share that IBM earned in the first quarter of 2007. Telelogic’s software helps its customers in the aerospace, defense, telecommunications and automotive industries streamline and test complex engineering projects. This is IBM’s 43rd software acquisition since 2001. Expanding by acquisition adds risk, but these purchases nicely complement IBM’s computer hardware and services businesses, and expand its client base. Software will probably account for half of IBM’s profit by 2010. IBM is a buy. TEXAS INSTRUMENTS INC. $37.50, New York symbol TXN, cut its revenue and earnings outlook for the second quarter of 2007, due to slowing demand for wireless network equipment and calculators. The company now forecasts second-quarter sales of between $3.36 billion and $3.51 billion, compared with an earlier estimate of up to $3.6 billion. Consequently, per-share earnings…