It isn't so much that IBM (IBM) is that bad. It's that it has been that bad. It isn't so much that it has missed the numbers. It is that it keeps missing the numbers.
So why give it the benefit of the doubt?
I think the miss had a lot to do with the inability to sign some deals that would have made the whole narrative whole. It would have taken the pressure off. It would have produced upside, especially because the gross margins would have expanded if it had more business, or at least the forecast for gross margin would be better because there is always some upfront cost to signing new business.
Look, Buffett isn't going away. The company's not going away. As the CFO, Martin Schroeter said, IBM remains the heart and lungs of its clients. We should see some fruits of the Salesforce.com CRM deal in the second half.
So my take: Buy some at the end of the day, when it will no doubt be marked down by the brokers who want to show they got better than the closing price, and then buy some tomorrow just in case the big sellers aren't finished.
And then just wait with a 3.47% yield supporting you.