Ibexx,
You are correct on both points, "IBM, as it stands today, is much better positioned than it was two years ago when Jules began to short this stock."
But Ibexx, I have adjusted my short position accordingly, as I observed IBM go from a 14 P/E multiple, and a rudderless company two years ago, to today's 26 P/E company focused on being, just as you said, "a serious software/internet company (in part) which should command a much higher P/E multiple than a conventional box company."
However, if you have followed my posts from the beginning, you will recall that I entered into a short position in IBM as a hedge to protect my profits in INTC, CSCO, and ALTR. Today, while I acknowledge that IBM deserves a higher multiple than it did two years ago, I am not sure that higher multiple should be almost double. I still feel that as an investment, Intel who showed a growth in revenues of 16 % + and a P/E multiple of 32, is much better than IBM with its 6 % growth in revenues, last quarter. Therefore, I continue to use IBM as a hedge against my other holdings, and consider my reduced short position in IBM, as an insurance policy.
Jules
All,
My posts here are intended to induce intelligent dialogue. I do not post here to receive name calling. I am always hopeful that someone here will respond to my observations on IBM intelligently and convince me that I am wrong. However, it should be done with facts, not insults.
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