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Today I'm refereeing a boxing match between two of the biggest tech legends around: International Business Machines Corp. (NYSE: IBM) and Hewlett Packard Co. (NYSE: HPQ).
I'm calling it the Clash of the Tech Titans.
The prize? A big slug of profits for your investment portfolio...
Both of these fighters are big - we're talking market caps in the tens of billions - but these longtime blue chips are more black and blue right now... and are working through major corporate turnarounds. (In fact, both installed new chief executive officers less than three years ago.) They're both trying to raise revenue and income in order to send their stock prices higher.
Now, neither of these heavyweights is a bad investment - both are solid companies, in it for the long haul.
But one of these pugs just might be a stud - more of an inside fighter - that you should add to your portfolio now.
Today, if you agree with my decision and make that investment, you'll soon be watching your wealth grow fast...
The Tale of the Tape
In this corner, "Big Blue" traces its New York roots back more than 100 years. It literally pioneered the dawn of the computer age.
International Business Machines Corp. (NYSE: IBM) weighs in with a market cap of $186.13 billion, 2013 revenue of $99.8 billion, and net income of $18 billion. It's got a price/earnings (P/E) ratio of 12.64 and a 2.38% dividend yield.
And in the other corner, the "Puncher from Palo Alto" was one of the very first firms to set up shop in what became known as Silicon Valley. Founded in 1939 by two graduates of Stanford University, the founding partners started up the company in the proverbial one-car garage.
Weighing in with a market cap of $63.63 billion, Hewlett Packard Co. (NYSE: HPQ) reported $112.25 billion in 2013 revenue and a net income of $5.11 billion. Its P/E ratio is at 11.97, and its dividend yield stands at 1.88%.
However, appearances can be deceiving. Those sound like great numbers, but both of these fighters are in turnarounds.
Both have seen declining revenue, income, and stock price over the past few years, and I know that neither of these new CEOs is happy with her stock price.
And that's why I'm refereeing this match. I've been a turnaround investor for almost as long as I've been around the high-tech world.
No doubt, turnarounds are one of my "special situations" that can hand investors huge profits... if you know what to look for.
Let's ring the bell...
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.