MB:
I was fascinated by your comment that my favourite bandit, Louis the third, actually dumped some of the returns from the sale of the global data network, into IBM's SG&A. Perhaps I misinterpreted the comment. As you know, I enjoy working over the IBM numbers. The remarkable reduction of SG&A at a time when the company is struggling with falling revenues, and profits does not make any sense and defies logic. How this reduction might have been engineered in any other fashion (that is, by legitimate means) is not apparent to me from either the company's announcements during the quarter or from a fairly detailed examination of the numbers. If you can give me some direction as to what indicates this activity, it would be appreciated. I would love to be able to move this from a "very probable" assumption to an irrefutable fact. It might prove of interest to the financial press as well. (g)
Old Louis has stretched the accounting game as much as anybody since Charlie Ponzi, and so far has exhibited a teflon coating. Eventually, they will likely boil him in oil for raping the company, but at present, he is a god-king
Best, Earlie |
