EDS - Recent pullback a buy opportunity??? Message Board

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 : EDS - Recent pullback a buy opportunity???

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Daniel Liberty who wrote (1085)	7/30/1998 6:58:00 PM
From: Daniel G. DeBusschere	Read Replies (1) of 1841

Conference call lasted over 1 1/2 hours with a lot of detail- A lot of questions on GM. Effects of strike will cause 3rd quarter gross margins to fall from 2nd quarter. Margins will remain same without this effect. Bright spots are 24% increase in non-GM base business revenues which exceed industry growth rates, reduced debt and interest expenses, reduced employee turnover and a huge pipeline of new business. EDS is spending $75-$80 million on investing in GM productivity and customer relationship projects and this figure is significantly reducing GM margins. The best point was the assertion that GM reductions in revenue and margins will stabilize in 4th quarter and begin to turn positive. This should reduce the street concern and focus attention on areas where EDS is showing some real strength worldwide. A final point is that stock pooling restrictions expired in June. EDS can be acquired tax free with stock for a relative song by some big multinational at current levels.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next