Shares of Hewlett Packard's (NYSE: HPQ) failed to recover meaningfully on Monday, but IBM's (NYSE: IBM) chart showed some improvement.



Chart Courtesy of StockCharts.com

IBM is a forgotten giant. But it was using a good portion of Hewlett Packard's business model a long time ago, and making money with it, consulting and integrating the technology components of the enterprise. IBM also has a financing arm which lets the company's clients internally finance their business solutions.

IBM also makes hardware and software, and provides integration services. IBM's been doing this stuff since 1911 and has a huge global footprint. Its problem is that it's not a big growth story, given its maturity and the huge number of competitors that it battles, including HPQ, as well as Oracle and others.

Still, it's easy to own IBM is you're a mutual fund manager looking to own big tech. You don't have to ask too many questions, as clients aren't going to penalize you for owning a stalwart stock like IBM, regardless of its lack of growth. It pays a dividend, which is important these days.

Plus, it's got all the stuff that value managers like going for it; a P/E ratio of 12, huge margins, cash flow, and an insane 66% return on equity, which measures management's efficacy.

So what's not to like? Owning IBM is like owning the biggest aircraft carrier in the world. It's safe enough, but it's not very maneuverable.

Of course, unless something changes, it doesn't have a big management problem either. And given the weak bounce in HPQ on Monday, the market may be thinking that other shoes could drop in HPQ, making IBM interesting, even if it's not all that sexy.

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