Satyr and Thread - I would expect Compaq's management to use every tool they have to enhance the bottom line. Why not? Mason and crew have a rep for savvy financial management. Look, I keep bringing up the example of IBM, but Gerstner and crew have seen a QUINTUPLING of the stock price since he came on board, accomplished with LITTLE or NO growth in most core areas of IBM's business, with the exception of services. How did they do it? FINANCIAL ENGINEERING!! They cut costs, they cut bodies, they bought back billions in stock, etc. etc. I'm not arguing that IBM can 'cut' it's way to continued prosperity, but if CPQ can leverage factoring and anything else, they should do so. So, the bottom line is that cost management and financial innovation are not necessarily viewed as negative by the Street. As for the rest of the article, it will be forgotten in a few days. Remember the uproar when IBM announced earnings recently? Stories about continued 'Asia pain', and IBM's CFO said growth will be slower and earnings flat the next quarter. Well, the stock has done just fine since then.
John |
