IBM stock fundamental analysis (IBM stock price)
IBM full form is international business machine. IBM is a very big software developer and IT consulting company. IBM was the largest IT or software company in the world. IBM is a very profitable company. IBM has business in all the countries of the world. IBM is very fundamentally strong, so we find that IBM stock is undervalued according to its profits. IBM stock market cap is $180 Billion. IBM have more than $12 Billion free cash flow. IBM significant gain profits.
IBM stock technical analysis (IBM stock breakout)
IBM stock is going to rise very fast. IBM stock has given a breakout. IBM stock has given a breakout from 206$. According to technical analysis, this stock is likely to reach 300$ very soon. It will definitely reach 300$ in the next 1-2 years. Here this stock has created a great buying opportunity. We will learn why hedge fund managers have started buying this stock.
Hedge funds trading strategy in IBM stock
You must be aware that after breaking out from 131$, the stock has touched 206$. After knowing that IBM stock was 206$, the hedge fund managers started selling whatever stocks came in their delivery. Whichever stock came in their delivery from 206$, after booking profits in that stock, they started taking short position in the future contract of this stock. By short selling this stock, the hedge funds took it up to 101$. When this stock reached 101$, the hedge funds which had short position in this stock covered their shorts.
In IBM stock, hedge funds started buying the stock in the first delivery from $101 to $175. And now the hedge funds have bought as much quantity as they had to buy in delivery. Now after the breakout from $206, the hedge funds have started taking long position in this stock in future contracts.
Maximum hedge fund, whichever hedge fund operates in stocks with very large market cap, that hedge fund uses 50% down strategy. When the hedge fund first entered in this stock, it had brought the stock down by 50% from its old high. Whenever a fundamentally strong company falls, hedge funds take that company down to around 50%. When this stock fell 50% from its old high, retail investors started selling this stock and hedge funds safely bought this stock from retail investors. If this stock fell 50%, hedge funds will take this stock up from $206 by 50%. That is, above $300 but we have to sell this stock at a price of $300.
Conclusion
The target for IBM stock is 300$. Even if any company is financially strong and profitable, hedge funds take the stock of that company up by 50% and then bring it down by 50% and then make huge profits.