International Business Machines Corp. (IBM)

BeachExec (59.69) Submitted: 11/26/2008 11:44:23 AM : Start Price: $79.32 IBM Score: +30.41

IBM is vastly undervalued. In addition to its leadership position in nearly all things IT, IBM is also a serious Cloud Computing play. Pundits seem to oogle over Google when it comes to Cloud Computing. I would argue that IBM is better positioned to reap the rewards if Cloud Computing truly is a disruptive technology of the near future. Its vertical strength up and down the Cloud Computing "stack" virtually guarantees IBM fully partakes in Cloud profits. Its hardware verticals from Intel-based servers to P series servers to Z series mainframes, the ubiquity of which in Cloud Computing cannot be understated from a value perspective, provides IBM with a unique ability to create Cloud data centers at lower cost than competitors. Its software is the the leader in middleware and also has extremely strong offerings in collaboration and systems management and monitoring. And its services combined with its R&D prowess and deep understanding of its clients' businesses positions IBM to be the leader in Cloud Computing. This is gravy on top of an enterprise already undervalued even if all one considers is "business as usual."