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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 95.26+3.1%Nov 14 9:30 AM EST

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To: John Koligman who wrote (21123)5/30/1999 9:04:00 AM
From: Zeev Hed  Read Replies (1) of 93625
 
John, I think that another "feature" of Gerstner's management is overlooked and that is the smart use of debt. IBM used to be proud for being debt free, but that is not necessarily smart, when you can get debt at 6% or less and your return on assets is much greater than that, some use of debt (without risking too much of it) is very smart since it lets you use "other people money" to improve returns on your stockholders equity. I have seen many people complaining of IBM debt on the balance sheet, and I think these people are wrong.

Zeev
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