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Technology Stocks : IBM
IBM 305.67+2.6%Jan 16 9:30 AM EST

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To: Victor Lazlo who wrote (7924)6/3/2003 1:05:31 AM
From: Arrow Hd.  Read Replies (1) of 8220
 
Ever hear of margins Victor? Do you have any idea what the cost/expense equation is for a billion dollars of Intellectual Property. Not much. Why, because it has already been written off against the IBM product set it was invented for. As Charles pointed out earlier being too conservative is a problem too, like double recovering cost/expense. You can't do it so IP has huge margins. Doesn't take much revenue to really impact the bottom line. That is just one example of product sets creating a disconnect between revenue and earnings.
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