Management at IBM better buckle down and find cloud and mobile strategies or Egan Jones will lower the company’s ratings. ‘Where the action is, where the growth is, where the margin is, IBM unfortunately is not,’ said Egan Jones CEO Sean Egan. ‘They have some difficulty positioning themselves properly and they need some attention.’ Egan-Jones is a Nationally Recognized Statistical Ratings Organization (NRSRO) and is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider. According to Egan, IBM’s wealth destruction has been in the area of $28 billion due to its lack of revenue growth. IBM shares are up nearly 4% so far this year, yet have fallen approximately 9% in the past 12 months compared to a 7% rise in the S&P 500. Egan said the strategic positioning of casino powerhouse Wynn Resorts needs to be upgraded lest the company see its rating slashed. ‘One of their primary assets, that is Macau, revenues are down significantly because of a change in policies by the Chinese government making it more difficult for people to access that market,’ said Egan. Egan called the controversy concerning Elaine Wynn’s board service is a ‘distraction.’ He said the larger issue is the age and lack of diversification on the board which makes introspection difficult.
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