Congratulations Arrow for once again forecasting IBM's 4Q98 earnings to the penny... as posted here in your #4418. You were also right-on in predicting an increase in MIPs shipped. However, we see once again that IBM's Shareholder's Equity decreased 2 %, Cash on hand down 24 %, R & D reduced from last quarter, Hardware revenues down, Maintenance revs off, and while I have not calculated the net effect on earnings yet, it appears that a very significant part of IBM's increase in earnings vs. a year ago came from the buy back of some 50 Million shares of their stock outstanding, and a 3.6 % lower tax rate...now down to 28.9%
So as I look back to my posts of two years ago, I see that almost all the items that I forecasted for IBM then, have come to pass....except IBM's market price. For this I congratulate you and the other long term IBM Investors on this thread.
Regards,
Jules |
