SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Ask Michael Burke
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Fred B. who wrote (57500)4/27/1999 6:50:00 AM
From: Earlie  Read Replies (1) of 132070
 
Fred:

Thanks for your post. I read it over carefully. Your main point, it appears, is that IBM's added PE relates to the fact that we have moved from a manufacturing economy to a service economy and that IBM is moving in parallel with this shift. If I left any other point out, by all means, correct me.

I view it differently. I actually worry about the fact that our economy is increasingly dominated by service rather than manufacturing. There is an old expression that relates to the fact that "servants are the last to be hired and the first to be fired."

While the view is old-fashioned, I continue to value a company's stock in terms of its earning power first, and its assets second. For three years, IBM has provided almost negligible growth in earnings even as its assets have shrunk. Neither of these facts support a four fold rise in the price of its stock over the same time period.

Best, Earlie
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News