IBM Message Board - Msg: 20196780

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Technology Stocks : IBM

IBM 306.44

-1.9%

Nov 7 9:30 AM EST

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To: David who wrote (7999)	6/5/2004 5:27:13 PM
From: Raymond L. Stevens	Read Replies (1) of 8218

IMHO the future for IBM is as good or better than any comparable institution. I come to this conclusion because of the business model that is currently being used. An annuity stream (similar to what IBM used to have when doing primarily rental of equipment) exists from it's outsourcing. This revenue should be becoming more profitable as the contracts age (outsourcing contracts are generally structured to yield more profit as the contract progresses into the later years of a typical ten year term). The consulting and "body shop" business seems to be doing well except for some down turn in last quarters report. These contracts often turn into a near annuity as well. It seems that many customers are favoring a single source for IS transactions which bodes well for IBM's hardware offerings as well. Once again this is my humble opinion and logic supporting it!

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