IBM's 10% Correction May Be A Buying Opportunity After 2Q EPS Beat And Guidance Raised

[First appeared on Seeking Alpha on July 19, 2012]

We were reminded of why we like IBM while we analyzed its 2Q 2012 earnings results and listened to its conference call. IBM has an attractive combination of growth potential, stellar execution, visibility, free cash flow, shareholder friendly capital policies and a low valuation. We admit that we sold our IBM position before the earnings season when we reduced risk across our portfolio and cut exposure in the technology and financials sectors.

Now that the company has announced its 2Q results, we are considering adding the stock back into our portfolio (we did the same with Intel Corporation (INTC); see our analysis on Intel here). In this update, we will analyze IBM's 2Q earnings results using our six-question checklist and discuss our strategy for IBM going forward.

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