Say, John, just last week, when IBM was about 167, I sent you the following observation and asked you for your take on it. Since then more big earnings news came out and the stock is up 30 odd points. Big Blue is a very big fish in the Internet pond and I would think that there must have been some reason that it you didn't include it in your list. Maybe if you made another list today, it would get a nod. If you have an opinion, I'd appreciate it.
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John,
Business 2.0, the most savvy Internet magazine in my view, just ranked IBM third in its first top 100 hottest companies that understand and lead the Net Economy. There were a number of factors considered but, basically, they were ranked by those taking best advantage of the opportunities promised by the Net Economy. IBM was behind only Cisco and Dell but ahead, overall, of all the rest including Intel, AOL, Amazon, Yahoo, CMGI (imagine), Microsoft (#61) and E*Trade Group.
They mentioned that IBM launched its web site in 1994 and it was in its ninth generation, making it a web veteran. It has shifted its focus from content to electronic transactions. In 1999, IBM hopes to handle 2,500 Web transactions each month to bring in $4 billion in sales for the year.
This article was in the May, 1999 issue, page 58. It is not yet on the Business2.com web site.
I believe IBM is currently undervalued, considering that this ranking is based on research from a poll sent to 600 companies and an analysis of the weight for each factor. I'm long the stock and have made it my main holding since I got in at 105. I think these people are really in a position to know what is what and who is who. I'm curious to know your take on it.
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