IBM Message Board - Msg: 21219419

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IBM

IBM 312.54

+1.9%

Nov 6 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: A 42nd Skeptic who wrote (8039)	4/12/2005 2:50:21 AM
From: Elroy	Read Replies (1) of 8218

A PE of 17.5 seems pretty low for a company with the the strength of IBM. Why is 17.5x low? HPQ is about 13x. IBM's EPS growth is only low double digits, so 17.5x sounds about right. Also, half of IBM's revenues are from IT services, and this area is likely to experience price pressure for a decade or two due to low cost competition from India, et al. That's fundamentally UNATTRACTIVE. Which corporation wants to pay an IBM IT service worker $100/hour when they can pay an Indian IT service worker $100/day?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next