Thanks for tagging me :)
I'm not a fan of the place: Kyndryl is ultimately IBM's spin-off - and that's what shapes its profile to this day. Much of it looks like the outsourced low-margin part of the old IBM service business: complex legacy contracts, low scalability and manageable growth momentum. The ongoing transformation towards cloud, security and hyperscalers is the right thing to do, but its structural leverage remains limited as long as the legacy business dominates. For sustainable outperformance, I lack a clear growth core that goes beyond a cyclical re-rating. Accordingly, I see Kyndryl more as a turnaround trade than a long-term quality investment.
I'm not a fan of the place: Kyndryl is ultimately IBM's spin-off - and that's what shapes its profile to this day. Much of it looks like the outsourced low-margin part of the old IBM service business: complex legacy contracts, low scalability and manageable growth momentum. The ongoing transformation towards cloud, security and hyperscalers is the right thing to do, but its structural leverage remains limited as long as the legacy business dominates. For sustainable outperformance, I lack a clear growth core that goes beyond a cyclical re-rating. Accordingly, I see Kyndryl more as a turnaround trade than a long-term quality investment.
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@Liebesspieler
Yes, I read that once too, that IBM is hanging on to them like a stone.
But I think it's good that they are now profitable.
And I don't think the path they've taken is a bad one either. And as you can see from the figures, it is slowly bearing fruit.
Given the valuation and the falling P/E ratio, I don't find you uninteresting
Yes, I read that once too, that IBM is hanging on to them like a stone.
But I think it's good that they are now profitable.
And I don't think the path they've taken is a bad one either. And as you can see from the figures, it is slowly bearing fruit.
Given the valuation and the falling P/E ratio, I don't find you uninteresting
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•@Tenbagger2024 I see the point - profitability is progress, and the management has indeed made some legacy contracts cleaner. For me, however, the decisive factor remains how much of this is structural and how much is more an effect of cost discipline and catch-up effects. As a spin-off from IBM, Kyndryl still carries a lot of low-margin legacy business with it, and that is precisely what limits the real upside in my view. On the valuation side, you can play the case, especially if the P/E ratio continues to fall - but the current trend is not yet sufficient for a lasting quality profile.
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•@Liebesspieler
Perhaps something for our traders
@Multibagger @Dividendenopi @TomTurboInvest
Perhaps something for our traders
@Multibagger @Dividendenopi @TomTurboInvest
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10Mês
@Tenbagger2024 I'm out. $IBM is for me one of, if not the top pick in quantum computing, but such service shops, no thanks!
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10Mês
@Liebesspieler @Tenbagger2024 The company reminds me of the times when the former Siemens $SIE IT subsidiary SBS was outsourced to $ATO. The figures speak a similar (bad) language.
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@Tenbagger2024 I'll have to take a closer look 😀
PS: Since you like chart formations more and more - I'm out of $MMK today - "W" as in back on the aVWAP 🤣
PS: Since you like chart formations more and more - I'm out of $MMK today - "W" as in back on the aVWAP 🤣
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@TomTurboInvest
And then get back in at the bottom?
And then get back in at the bottom?
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•@Tenbagger2024 yes - just like recently 😅
PS: just had a quick look at $KD, only skimmed it on my phone, BUT technically very tempting!
Bullish in the short term in any case, first target zone around 27.8$, but definitely sees potential up to 34$ or 37$ in the short/medium term
I'm not a "fundamentalist" but also strong according to Quantamental🧐
PS: just had a quick look at $KD, only skimmed it on my phone, BUT technically very tempting!
Bullish in the short term in any case, first target zone around 27.8$, but definitely sees potential up to 34$ or 37$ in the short/medium term
I'm not a "fundamentalist" but also strong according to Quantamental🧐
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@Tenbagger2024 Nope, thanks anyway. I'm not deep enough in the subject when it comes to papers that are so specific to me. I'm slowly working my way into the field, but it wouldn't be enough for more than a copy trade. And the enthusiasm here is limited
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•@Tenbagger2024 I got in today at the start of trading with a small $KD position, the bridge day after Thanksgiving is not ideal in terms of liquidity, but the threshold at 25.7$ was tempting. Maybe we'll head north next week 😅
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