Niles was interviewed about IBM. Concern about IBM hardware sales; doubtful that growth in services will be 20% as it was in 4Q, and whatever it is, probably not enough to compensate for slowdown in hardware. He made the point that even if they make their gross revenue numbers, they may not meet their net expectations because margins are reduced. He pointed out that, as always, the quarter is back-end loaded and the last two weeks are critical.
Recommendation: continues to see it as "interesting" under $170. Four brokerage houses commented today, including his company, wryly expects that the other analysts will make their comments on Monday. The "news" will be then out. If you are Holding continue. If you want to buy, wait for it to settle and then BUY. IBM is a great company, with a great vision, he said.
Yours,
Victor or Somebody |
