My comments:
If you take IBM, break it up, and give it a middling tech stock multiple, it would be valued well above where it is now. They have some fat they need to trim, yes. And with their size, it takes a lot to show growth, but this is one of the few tech stocks with reasonable value & forward momentum you can find.
Barry Hall's comments:
PLease buy more. It's falling and I haven't had time to get short again, yet!
Certainly if the market tanks, IBM tanks with it, but over the next 2-3 years IBM is poised to do very well IMO and in the opinion of a few others..
11:41am EST 11-Dec-97 Prudential Securities (D.YOUNG)
Compared to the market's largest industrials which are less profitable and growing more slowly, we believe IBM is undervalued by 50-65%. Compared to service and software peers we believe IBM is undervalued by 65%. Disaggregating IBM and comparing valuations unit by unit, we believe IBM is undervalued by 50% - our analysis indicates potential upside to $165/share.
07:33am EST 11-Dec-97 Merrill Lynch (S.Milunovich)
IBM is probably in better shape than many tech companies
P.S. IBM's Tivoli unit buying SWRT. I have worked with the product [Expert Advisor] and company, and made nice money on the takeover. Great synergy and smart purchase. |
