“IBM fell to its lowest price in five years after disclosing that the U.S. Securities and Exchange Commission is conducting an investigation related to the technology seller’s revenue recognition.
International Business Machines Corp. said Tuesday it learned in August that the SEC is looking into the accounting treatment of certain transactions in the U.S., the U.K. and Ireland, according to a regulatory filing. Shares of the Armonk, New York-based company fell 4 percent to $137.86 at the close in New York, their lowest price since October 2010.” – Bloomberg
Those my friends ..
Those are the ‘magic words‘ as far as I’m concerned.
The entire narrative has now changed.
As far as I am concerned … International Business Machines (IBM) is no longer a valuation story. And this once again highlights the need to focus on your downside risk. If you are flat during the bad times … what will it look like when you are on a ‘Golden Run’ ??