Cramer Quick Take: I'm a Buyer of IBM
NEW YORK (TheStreet) -- Can investors still make money with IBM (IBM) after the company reported monster earnings, sending shares up 5%? Jim Cramer told Debra Borchardt at TheStreet.com Wednesday he still feels there's room for IBM to grow, which is why he owns share for his charitable trust, Action Alerts PLUS.
Cramer said after a disappointing quarter last quarter, IBM Wednesday delivered remarkable results. He said many are focused solely on top-line growth, but the story at IBM is how much money they make on every dollar they bring in.
He said the gross margins at IBM are incredible and as worldwide GDP begins to rebound, the company stands to make even more.
Cramer said most investors, and indeed most news outlets, don't take the time to read entire earnings releases, which is why so many headlines read that IBM disappointed this quarter.
If you want to be a good investors, Cramer said, then you need to read everything a company puts out. He said while shares of IBM trade at 10 times earnings, he feels they are worth at least 12 times 2015 earnings.
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-- Written by Scott Rutt in Washington.
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