Scientists with the International Business Machines Corp. (IBM) plan to unveil a prototype chip today that uses optical connections to increase the speed of moving data among chips to eight times that of previous technologies, The Wall Street Journal reported.
An audio podcast of this article is available at: poweropt.com/podcasts/2007_03_26_IBM.mp3
The Journal stated the chip’s speed, clocked at 160 billion bits of data a second, would allow a high-definition movie to be transmitted over a short distance in a fraction of a second, compared with the half-hour it takes over home broadband connections.
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The technology could pave the way for devices that almost instantly transmit a digital X-ray to a doctor’s hand-held screen, a seismic analysis to an oil engineer’s workstation or movies around home networks, the Journal reported.
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IBM’s stock is down in recent months. After reaching a high of nearly $101 in mid January, the stock has declined to its current position of $95.03. Another positive factor for IBM is the company enjoys a profit margin of 10.3% compared to a 7.9% industry average. The company has a 15.60 P/E and a majority of analysts give IBM a strong buy rating.
Competitors for IBM include: Electronic Data Systems Corp. (EDS), Hewlett-Packard Co. (HPQ), Microsoft Corp. (MSFT), Applied Biosystems Group (ABI), Accenture Ltd. Class A (ACN), BearingPoint Inc. (BE), BEA Systems Inc. (BEAS), BMC Software Inc. (BMC), Computer Associates Intl. Inc. (CA), Compuware Corp. (CPWR), Cray Inc. (CRAY), Dell Computer Corp. (DELL), Datalink Corp. (DTLK), Diamondcluster Intl. Inc. (DTPI), NIC Inc. (EGOV), EMC Corp. (EMC), Dot Hill Systems Corp. (HILL), Infocrossing Inc. (IFOX), Informatica Corp. (INFA), NCR Corp. (NCR), Novell Inc. (NOVL), Network Appliance Corp. (NTAP), Nuance Comms. (NUAN), Oracle Corp. (ORCL), Pacificnet Inc. (PACT), Quest Software Inc. (QSFT), Rackable Systems Inc. (RACK), SAP AG (SAP), Sapient Corp. (SAPE), Sun Microsystems Inc. (SUNW), Sybase Inc. (SY), TIBCO Software Inc. (TIBX), Unisys Corp. (UIS), Vignette Corp. (VIGN), WebMethods Inc. (WEBM), and WebEx Communications Inc. (WEBX).
All of the following option trades have 54 days until expiration. IBM Corp is currently trading at $95.03. These trades were discovered using the powerful suite of option search tools found at PowerOptions.
|Covered Call â€“ IBM Corp (IBM) $ 15.11 (54)|
|IBMER||07 MAY $90.0||$6.20||6.50%||1.30%||1.30%|
|IBMES||07 MAY $95.0||$2.80||2.90%||3.00%||3.00%|
The 07 MAY $90 covered call trade, an in the money covered call, offers 6.5% downside protection and a potential profit of 1.3% if the stock remains unchanged or rises. The break-even price of this trade is $88.83. The net cost of this trade, per 100 options, is $8,883.00.
The 07 MAY $95 covered call trade, an in the money covered call, offers 2.9% downside protection and a potential profit of 3.0% if the stock remains unchanged or rises. The break-even price of this trade is $92.23. The net cost of this trade, per 100 options, is $9,223.00.
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