Arrow,
Aren't you saying the same thing here that I was saying.
"The real issue that has not been solved is price attrition"
"The business is there and the volumes have increased dramatically in some of the non-PC sectors but pricing is decimated at every corner."
Aren't IBM's prices being "decimated", (margins reduced), because of new competition and the partnering of what once was their almost exclusive domain?
Do you believe, as I do, that the recent barrage of announcements from IBM, in the last two weeks, (mostly new order wins and future tech partnerships), combined with Thursday's announcement of the sale of 2.6 million shares of Redhat stock held by IBM, may be harbingers that Q2 earnings are going to be more disappointing than anticipated ?
I also take note that many analysts were quick to defend IBM the day after Merrill Lynch analyst Steven Milunovich expressed negative concerns. In unison, sevral analysts explained, any revenue shortfall in Q2 is old news and that IBM has always been a second half story. These statements appear to be designrd to give IBM almost a blank check for their Q2 earnings report.
I think we are being set up for another quarter of poor quality of IBM's earnings. As I have said before, without the continuation of massive stock buybacks, revenues from their employee pension fund, or lower tax rates, IBM will find it increasingly difficult to show acceptable YOY earnings growth rate comparisons.
Regards,
Jules
PS I currently hold no position in IBM’s stock, or their options. |
