Hello John,
If you care to go back to some of my earlier posts, (links provided below), you will find that I believed then, and still believe now, that the Y2K problems present a "double edge sword for IBM. On one hand it will boost IBM's Services Div. revenues in the near term, (next 18 months). However, those revenues will be at much lower GPM, about 23%. On the other hand, because IBM has many industry application packages installed at customer's locations with Y2K problems embedded,, and because IBM's systems engineers were the "experts" who helped create the Y2K problem by teaching customers how to save 2 positions of memory by lopping off the first 2 digits of the date, it is quite possible that it presents a legal and/or PR exposure for IBM. In addition, most longer term institutional funds have already factored in the benefits of increased revenues from Y2k solutions over the next 18 months. The question now though is, when will these fund managers factor in what will happen after year 2000 when there will no longer be IBM Y2K revenues? Combined with the potential for IBM legal liability, (in this crazy world where everything is litigated) has only added to my many concerns for IBM's future stock price.
Jules
techstocks.com
techstocks.com
techstocks.com
techstocks.com
techstocks.com
techstocks.com
techstocks.com
techstocks.com
techstocks.com
techstocks.com
techstocks.com
techstocks.com
techstocks.com
techstocks.com
techstocks.com
|
