****IBM****
Take a look here Kevin...
Merrill Lynch cut its fourth quarter earnings estimate on shares of
International Business Machines Corp to $2.20 a share from $2.26 a share, based on the weak yen and slower
personal computer demand in Japan, a market source said on Thursday.
-- Merrill, which later confirmed it cut its fourth quarter estimate on IBM, said in a research note it reduced its
revenue growth assumption but saw an eight to nine percent local currency gain.
-- Lowered 1997 estimate to $6.24 per share from $6.30 per share, while maintaining its accumulate rating.
-- ''Issues include the strengthening dollar/yen, flat PC sales in Japan and international pressure in disk drives
and DRAMs (dynamic random access memory),'' Merrill said.
-- Positive factors could include services, software and servers, it said.
-- Merrill also said believes tax rate could come in below level most Wall Street analysts are expecting.
-- Says much of revenue growth estimate reduction due to weakening yen.
-- PC demand in Japan is poor, Merrill said. But said IBM should still outperform most vendors in Far East.
IBM might be one of the last to fall... it is a light downie, but maybe more to come.. keep Kurlack locked in the closet, you hear????
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