Jules,
<< Is there anyone on this thread, who also owns IBM, who can
help defend them here? >>
I bought IBM recently strictly on their numbers, although I'm not convinced I did the right thing. I mean, they have a PE of 13, a PS of 1.1, and good relative strength (40% growth last year). If you've read or know about the book "What Works on Wall Street", you will recognize that this is the type of company that is most likely to make money in the coming year. The most impressive number is their low PS, which, according to the book, is better at indicating future growth than PE, which, for IBM, is also low.
I also agree with another poster that they are at the cutting edge with some products, e.g., voice recognition. I've evalutated the offerings from a few vendors, and found IBM's Voice Type to be the best. And while their OS2 has failed to break the Wintel monopoly, they have a very strong presence at airports and banks. I have yet to walk into a bank that didn't have an IBM terminal.
No, I don't walk into banks much anymore, but it leads up to my final point: automated banking service. I recall Gestner saying on NBR that he wanted to lead IBM into the automated banking service in a big way. In so far as the banking business is inherently conservative, I believe they have a chance at getting the lion's share of that market.
So, that's my reasons for buying IBM. Like I said, I'm not convinced I did the right thing, despite the above arguments. I welcome comments or contrary opinions.
Len |
