IBM Message Board - Msg: 6452945

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Technology Stocks : IBM

IBM 297.59

+2.5%

Nov 21 3:59 PM EST

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To: Jules B. Garfunkel who wrote (4256)	11/17/1998 2:44:00 PM
From: George W Daly, Jr.	Read Replies (2) of 8218

So my question now is... Despite the fact that it is usual for different analysts to cover of the two companies IBM and HWP, will Wall Street now apply the same standards to both companies? Just the opposite, the analyst blurb I saw was blaming part of HP's problems on not having the exposure to the high growth services and software markets the way IBM does. IBM presented state-of-the- e-business address to analysts last week and they apparently liked what they heard as many upgraded stock price targets. IMHO, I think people are making investing in IBM a little more complicated than it is right now. The internet is here, its real, and will grow explosively for the next several years at least. IBM's forecast was for possible 10-11% CGR for the IT industry as a whole, and 20% CGR for e-business portion (up to $600 Billion) up to 2002. I don't see how anyone could argue that IBM won't get a decent piece of that pie so the only reasonable questions are: Do you believe the growth rate numbers (I think thats easy the way the internet is headed), and can they sustain margins. Evidence is that service margins will increase since IBM is getting great experience from current accounts and can use what its learned more efficiently and pre-canned in subsequent efforts, and that at least for now, there is a big push back towards higher margin, higher reliability servers. Thats IBMs bread-and-butter. Disclaimer applies: I speak only for myself, not IBM. GW

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