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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Paul Moerman who wrote (48443)	4/27/2000 8:07:00 PM
From: Haim R. Branisteanu	Respond to of 99985

Paul, thanks for the response. I am also familiar with pension plans but may be, not as much as you. My point being in this post is more related to the issue of misreporting financial performance, and if it does not satisfy WS to tap into pension funds contribution to pony up earnings. We all know,that the market will have much lower returns compared to those in recent years (Sorry bulls I forgot that in the NEW ERA 30% returns a year in stock indexes is the norm). In January 1999, Lucent also tapped Lucent employees pension fund to report better earnings. Since we know what happened to Lucent stock relative to the market and other telecom stocks. Now Lucent is "RESTRUCTURING" - e.g. firing older employees!!!! My point is that there was strong opposition to IBM's "new plan" from IBM's "old timers" and IBM solved this issue by putting it for a vote to the "share holders" who were disappointed by IBM stock performance. I stand by my statement that this is plain robbery as the whole issue is not to benefit IBM in the long run or IBM's employees, but a fast fix to otherwise disappointing earnings. As you rightly state "Because if and when it goes the other way (investment returns are below "normal" for some period of time), the employer may well have to cough up additional money to keep the plan's accrued benefits adequately funded under the law." So from what you say if the market will under perform IBM must contribute more money to the pension fund, IBM earnings will suffer and then the attractive solution of firing those old timer will please WS ....... I just forgot it is called restructuring. As a reminder DEC (Digital) restructured itself to death to please WS until the company disappeared (Oh yes they were bought by CPQ). Would you like the same should happen to IBM just because the ROBBER BARONS want now for their bonuses higher IBM stock prices? What about 5 year from now and who will place or employ those restructured employees?????? In a nut shell since ancient times you do not play with abundance you save it for bad times. (I think it was Jacob who saved Egypt from famine) IBM the only bad guy barely, there are plenty of CEO's and CFO's of publicly traded companies who deserve to go to jail . BWDIK Haim