Paul,
This morning we have a perfect example of the "devine wisdom" of today's Sell Side Technology Analysts, and double standard they employ for stock evaluation. Today Intel announced its new Pentium II. This new part will extend Intel's market into the very high profit margin Workstation market. A market they have not participated in before. At the moment Intel is down 1. On the other hand, IBM announced that its lab had developed a new encryption technology. Never mind that it is not ready to market, or that the US government may never allow it to be implemented, but once again IBM is up 1/8. And you said, "analysts ignor salient points".
Actually, this afternoon IBM's Gerstner will once again tell analysts his company's overall "long term strategy" for "THIS" year. He will explain to analysts why buying back IBM shares, in order to prop up earnings, is better for the stockholder than growing high margin businesses. Is it a coincidence that Lou selected this day, when Intel announced its Pentium II, to hold his conference, or am I just becoming too cynical.
Regards,
Jules |
