Robert, very good point.
IBM's North America numbers for the third quarter look very good. With a weaker dollar, EMEA (Europe) may overcome the weakness in Asia. G5 sales are strong, essentially "sold out". For the long term, I hold a lot of IBM. Their business strategy is sound. They are number one or number two in the markets they consider strategic (PC's being the exception). For those who think MSFT is the "dominant" technology company, they must be smoking the stuff they are smuggling into Washington from BC. Add up the revenues from IBM, HWP, CPQ/DEC, and a host of others. It is like saying the company that controls the steering wheel market is the dominant company in the automotive industry.
However, I do not believe that IBM can buck the market over the short term. I sold covered calls and bought puts when it hit 127. I agree with Greg, I think it will hit 110 within a week or so. For it to hit 80 to 100, we would need a market meltdown. Not to say that is not going to happen. Between Mr. Clinton, Yeltsin, Greenpspan, and Starr...who knows?
One way or another, bear or bull, somebody will make money! |
