IBM Message Board - Msg: 17563092

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Technology Stocks : IBM

IBM 306.44

-1.9%

Nov 7 9:30 AM EST

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To: Charles Tutt who wrote (7685)	6/5/2002 9:36:54 PM
From: Robert Scott Diver	Read Replies (1) of 8218

You posted >>Given two companies identical except that one has billions in debt and the other is debt free, I'd take the one without the debt. So it is a negative. You can argue that other factors outweigh it, and I might even agree, but you can't turn debt into a positive. << So if you were comparing a highly successful bank and a debt-free business selling a commodity product, you would take the debt-free business? BTW you referred to IBMs "massive debt" as a negative. If IBM discontinued the financing business, it would have a very negative impact on the company's results. Therefore I can easily and rationally argue that the debt is a positive. Given that the S&P ratings on IBM debt are so high, your "If nothing else, it makes it harder for the company to take on debt. <g>" makes no sense to me when discussing IBM. JMHO.

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