Even the most troubled companies out there can turn themselves around, but first they need to know how. That is why Jim Cramer set his sights on IBM, the old-line technology company that has been stuck in a brutal downtrend in the past two years.
“Mainly, IBM has spent its money buying back an insane amount of stock. They should consider changing the name to International Buyback Machines,” the “Mad Money” host said.
Cramer thinks there is a more positive and constructive approach that IBM can take to turn things around. In order for that to happen, management needs to put its money to work more intelligently. If IBM’s business is declining, then buying back stock isn’t going to fix anything.
“While IBM has made a huge string of acquisitions, I think that they haven’t thought big enough,” Cramer said. (Tweet This)