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

To: Arrow Hd. who wrote (6978)	11/9/2000 11:06:02 PM
From: THE WATSONYOUTH	Read Replies (2) \| Respond to of 8218

yahoo.cnet.com "Our main objective is not revenue," Gerstner said. "Our objective is old-fashioned. It's cash and earnings." During the last seven years, IBM delivered 14 percent compounded growth in pretax income, 23 percent growth in earnings per share, and $105 billion in cash flow, he added. "We kind of believe earnings and cash flow drive value," Gerstner emphasized." What a crock! Now Lou-ser is trying to intimidate the analysts like he intimidates his senior level management. Well, I'm sure he can bluff his way thru the analyst meeting but the street will not be fooled. This stock goes no where until consistent moderate (10%) revenue growth is resumed. THE WATSONYOUTH

To: Arrow Hd. who wrote (6978)	12/14/2000 10:29:58 AM
From: Arrow Hd.	Read Replies (1) \| Respond to of 8218

Freeway shipping now but I do not expect any significant volumes for a number of reasons. Also, IBM usually uses very conservative accounting practices and though most technology companies book revenue upon shipment IBM does a hybrid deal by transferring title at shipment but for large ticket items such as Freeway they book revenue upon physical installation. Getting systems installed at year end is always a logistical problem. The Shark announcements are also very positive but again more for next quarter. Gerstner's "no comment" regarding 4th quarter performance probably driven by the new communications guidelines but it didn't help. Best guess is there will be no prewarn and IBM will make earnings with flat revenues so a continuation of previous quarterly trends. It wanders here with some tax selling, tech earnings warnings and so on. I think next year brings a more disciplined market where a company must grow every aspect of their business to protect its PE. I would expect a first quarter rally especially if the Fed cuts rates but after that it could become a defensive market again. Just some opinion for a wintery day here. Happy Holidays to all who visit and contribute here.