Via stockadvisors:

Leo Fasciocco specializes in finding stocks that are breaking out from technical basing patterns. One such stock is IBM. Here’s the latest from his Ticker Tape Digest.

“IBM is one of the best of the blue chips.  The stock’s long-term chart show the stock now challenging its all-time high. It has just edged out from an eight-week, cup-and-handle base today.

“The stock has made a 52-week high and is in position to make an all-time high. It just needs to get over the high of 139.18 set in July of 1999.

“IBM is one of the largest IT solutions providers in the world. It designs computer systems and software and provides related services. Its hardware products account for 22% of sales.

“IBM is also a leader in middleware software (20% of sales), which enables disparate computer applications to communicate. It also offers a variety of services that make up 55% of sales. They include outsourcing, maintenance, and systems integration.

“This year, analysts predict IBM will rack up a 23% gain in profits to $8.75 a share from $7.13 a year ago. The stock sells with a price-earnings ratio of 14. We see that as low given the growth rate this year in earnings. Looking out to 2009, the Street expects net to climb 11% to $9.73 a share.

“In our opinion, the big institutional money has to go somewhere! IBM appears to be one of those places. We are calling for IBM to advance to 150 within the next few months. A protective stop can be placed near 125.

“We rates IBM a conservative play but one that can work higher with lower risk than other blue chips. Traders can also use the stock as a near-term trading play.”

Track Ticker Tape’s picks at:

http://trackthepros.com/categories.php?category_id=1379