<<''Mr. Gerstner slyly said that IBM shouldn't be considered an Internet company then rattled off statistics implying IBM is undervalued relative to the Yahoos and Amazons,'' Merrill Lynch analyst Steve Milunovich, said afterward in a note to clients.
Wall Street brokerages responded to his upbeat remarks, which were made at the company's spring investors briefing in New York, by boosting share price targets. Merrill Lynch estimated IBM stock could hit $270 within 12 months.
''With 25 percent of revenue from e-business, IBM is becoming a quasi-Internet company,'' Milunovich said in a research note to clients of the largest U.S. retail brokerage.>> -- From Yahoo News 5/13/99
Chuzz: Don't you think that DELL is ATLEAST a "quasi-internet company"..?? I would also contend that DELL is SIGNIFICANTLY undervalued compared to the Amazons and the Yahoo's of the world. It all seems to come down to perception in the investing world right now. DELL and IBM both provide infrastructure (PCs, laptops, servers, workstations, storage, etc..) to enable the internet revolution. Yet, IMO DELL has web-enabled its business processes MUCH more effectively than IBM. DELL does have a higher P/E than IBM but the difference in sales and earnings growth rates may account for this.
Do you have any thoughts about why DELL has not moved much recently (in light of all the good news that we have been bombarded with)..??
Best Regards,
Scott |
