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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: Jonathan Edwards who wrote (6915)	10/17/2000 11:22:29 PM
From: J R KARY	Read Replies (1) \| Respond to of 8218

Some recovery in Asia , US after-market selling overdone ? Hopefully value buyers who foresee a better 4Q from a dividend paying IBM will replace the fast selling earnings players tommorrow . IBM & INTC firmer in the Asia markets: "Tuesday October 17, 10:05 pm Eastern Time CORRECTED - CORRECTED-IBM off lows in early Asia, Inte In TOKYO story headlined ``IBM (NYSE:IBM - news) off lows in early Asia, Intel firmer'' please read in lead paragraph .... losing over 12 percent on disappointing earnings results which came after the bell .... instead of .... losing over 12 percent during the regular U.S. session (clarifies that fall was after the regular session). A corrected story follows. TOKYO, Oct 18 (Reuters) - Shares of International Business Machines Corp recovered some ground in after-hours trading early on Wednesday in Asia after losing over 12 percent on disappointing earnings results which came after the bell. Shares in the world's largest computer maker traded on the Instinet electronic brokerage system around $104 as of 0000 GMT, above the $99 low posted after a regular close of $113. The company announced its keenly awaited earnings results after the bell, saying its third-quarter sales rose three percent to $21.8 billion, missing analysts' forecast of $22.4 billion. The stock price quickly tumbled on Instinet. During Tuesday's regular session, IBM rose 1.69 percent while other technology stocks were sold as fears of slowing earnings battered computer chip makers and the Philadelphia Stock Exchange Semiconductor Index (^SOXX - news) plummeted 9.29 percent. The tech-laden Nasdaq index (^IXIC - news) slipped 2.32 percent on Tuesday, extending Monday's 0.80 percent loss. The world's biggest chip maker, Intel Corp (NasdaqNM:INTC - news), also reported third-quarter profits after the regular session close. The company said net profits surged 52 percent to $2.9 billion, outperforming market expectations, which had diminished after its revenue warning last month. The results pushed the share price firmer to around $38 on Instinet in early Wednesday Tokyo trade from the regular close of $36-3/16. Intel's shares had plunged about 50 percent since the profit warning. biz.yahoo.com ------ Jim K.

To: Jonathan Edwards who wrote (6915)	10/18/2000 4:08:39 AM
From: Robert Scott Diver	Read Replies (1) \| Respond to of 8218

Jonathan, The numbers you posted indicated that stockholders' equity has dropped slightly from 1993, seeming to imply this was a notable negative. Since 1993 stockholders' equity per share has risen. IMHO, this is a significant positive from the stockholders' point of view. Scott

To: Jonathan Edwards who wrote (6915)	10/18/2000 7:08:05 AM
From: Alcona	Respond to of 8218

Jonathan, thanks for the reply...buy-backs (of shares) still looks like a questionable use of cash...(to me). Al

To: Jonathan Edwards who wrote (6915)	10/18/2000 9:03:31 PM
From: THE WATSONYOUTH	Respond to of 8218

There are no doubt all sorts of complicated accounting rules of which I am ignorant (but willing to learn about if someone will explain them) that affect stockholders' equity, but as a first approximation if you have positive net income (which IBM has since 1994) combined with declining stockholders' equity (as happened in 1995, 1996, 1997, 1998, and 2000 to date), it means you've spent more than you made to buy back stock... Now....you might ask why did 1999 not follow the pattern you pointed out of continued declining stockholder equity?? Well, perhaps it is because that was the year that Lou-ser sold off the IBM Global Network to AT&T for $5 billion less than 2 years after calling it the "cornerstone" of IBM's Internet strategy. That transaction meant a net $4.1 billion cash infusion to IBM in the second quarter of 99. Seems like if that money was used for a new fab, that fab would be coming on line very shortly..... just in time to take advantage of the tremendous increase in demand for products from the microelectronics division. But, unfortunately, Lou-ser had that money ear marked for more important uses. THE WATSONYOUTH

To: Jonathan Edwards who wrote (6915)	10/18/2000 11:51:55 PM
From: ToySoldier	Respond to of 8218

I was wondering when IBM's stock price would finally come back to reality. There was too much evidence that they were focusing on stock price defense with stock buy-backs and major internal cost saving efforts to reduce costs and make their profits in likely anticipation that they were not going to see any significant revenue growth. They are still smarting from Y2K spending hangover. You bring up a real good point that myself and others discussed about the ramification of IBM's buyback efforts taking away from long term R&D and investment in new initiatives. Yesterday's earnings report is starting to show the results of short term stock price benefits and long term company sickness. Cheers! toy