Arrow Hd, I also believe revenue is the wild card.
As Jules has repeatedly pointed out, IBM is a master at managing the EPS number, and I suspect they will do it again. I predict they will be within a penny of consensus. It does appear that Asia Pacific is recovering quite well, North America remains strong, and high end servers and software are doing well. Of course, services continue to churn out the numbers, and that won't change. PCs seem to be improving, but still not great. Mid Range servers are hurting. In fact, I have been involved in enough large ERP opportunities where SUNW has beaten IBM and HWP, that I bought a substantial amount of their stock. It is down slightly since then, but IBM does not seem to be winning market or mind share there. A concern.
I added to my long position today, since I think that IBM may surprise on the positive side on revenue. Obviously, Jules and The Street don't agree. We shall see. |
