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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (34205)	9/17/2001 3:41:04 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69796

IBM also has a relatively stable revenue stream. In its second quarter, its services backlog grew to $95 billion, from $87 billion in the first quarter, and Big Blue inked $16 billion in new contracts, with three deals worth more than $1 billion each. Bruce Garelick, an analyst at Loomis Sayles & co., sees IBM's Global Services, which outsources back-office operations and integrates software and systems, as the company's sales driver for at least the next two years, delivering growth at a low double-digit clip. George Elling, analyst at Deutsche Banc Alex. Brown, sees services generating $36 billion of 2001 sales, up 8.6 percent from last year. Clearly computer services is one of its better businesses. Shebly Seyrafi, analyst at A.G. Edwards, expects services sales, not including maintenance, to grow by 11% in 2001. (He rates IBM Maintain, equivalent to a Hold.) Services and its support business for mainframes "are two large businesses that are essential to enterprises, that you can't pull the plug on," says Ken Smith, portfolio manager at the Munder Future Technology Fund, which has a 2.5% position in IBM. On the hardware front, IBM is set to launch some new products in the fourth quarter, specifically its Regatta line of servers, which may spur more sales, says Don Young, analyst at UBS Warburg, who rates IBM Strong Buy and sees IBM stock reaching 140 in the next 12 months. IBM's valuation looks fairly attractive, too: It's selling at 21 times its 2001 consensus estimate of $4.57 a share, according to Thomson Financial/First Call, a premium to its projected long-term annual earnings growth of 13 percent. IBM is trading at around its five-year median of 20 times forward earnings, and is well off its high at about 33 times future earnings. It's changing hands at 18 times projected earnings for 2002, when the Street is looking for $5.21 a share. In the near term, IBM's sales may suffer. First, customers may hold off on purchases, awaiting the new wares in the fourth quarter, cautions Young. Also, IBM warned that chip sales may come up short in the third quarter -- although microelectronics comprised only $1.1 billion, or 5% of second-quarter sales. Another weak link for IBM is its network management business, Tivoli. "It's losing market share and shows no signs of turning around," says Garelick. public.wsj.com

To: Johnny Canuck who wrote (34205)	9/17/2001 10:42:27 AM
From: j g cordes	Read Replies (1) \| Respond to of 69796

Adding shares in QCOM and BRCD. The theme of this thread is Technical Analysis, therefore some TA remarks... the market, especially techs have been sliding for some time. Could there be a larger negative hammer (I can't imagine one), to drive prices lower than the WTC disaster? Support is literally being pounded into place today. Even with the Dow currently down 580 points and the NAZ off 90.. we'll see stocks like QCOM, RFMD, BRCD, VRSN and some others close even or up for the day. Jim