IBM Message Board - Msg: 19719674

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Technology Stocks : IBM

IBM 306.44

-1.9%

Nov 7 9:30 AM EST

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To: Elroy who wrote (7988)	1/22/2004 9:40:34 AM
From: Kirk ©	Read Replies (1) of 8218

Interesting analysis. Does IBM have any unprofitable divisions which you value at zero? Another way to look at HPQ is to say their divisions doing zero in profits are part of the cost of doing business. Didn't they recently put hardware and IT services under one roof so the combined total can be the metric? The deal is they were selling IT services using hardware bought at transfer cost to win business. This was good for the IT side but was killing the hardware side other than the higher volume helped spread costs. The cost spreading was good 10 years ago when volumes and margins were higher but today prices are so squeezed that transfer cost probably hurts... hence combining them all into a single unit under Ann Livermore makes sense.... at least that is the theory. GTW is a failing PC maker who is now trying to compete with BestBuy, Walmart and Radio Shack. It deserves a 0.1x price/sales as its hopes are slim and none. And Slim applied for a job at Dell. Kirk

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