Short-seller Chanos Says IBM Is One of His Highest Conviction Shorts

The video discusses the shift in investment focus away from Tesla, highlighting new market opportunities. It delves into IBM's financial situation, labeling it a value trap due to its shrinking business and questionable accounting practices. The speaker predicts a future financial reset for IBM, with earnings likely to be lower than reported, and discusses the implications of these practices on IBM's stock value.

What company is introduced as a high-conviction idea and described as a value trap?

• IBM

• Exxon

• Tesla

• Bloomberg

What is the main issue with IBM's financial reporting according to the speaker?

• Engaging in accounting tricks

• Inflating stock prices

• Overstating revenue

• Underreporting expenses

How does the speaker suggest IBM is manipulating its earnings?

• By increasing sales

• Through spin-offs and adjusted earnings

• By reducing workforce

• Through mergers and acquisitions

What historical event does the speaker compare the future earnings reset to?

• IBM's $20 per share promise

• Tesla's market entry

• Exxon's structural changes

• Bloomberg's financial estimates

What is the predicted future earnings per share for IBM according to the speaker?

• $65 to $4

• $4 to $13

• $6 to $5

• $9 to $12