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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Terry Whitman who wrote (32302)	3/15/2002 9:28:52 AM
From: Chris	Respond to of 52237

07:34 ET IBM: WSJ highlights non-operational gains that have boosted earnings (IBM) 106.60: The Wall Street Journal reports that IBM's pension income is likely to decline this year for the first time since pensions became an income item in 1996. IBM has lowered its actuarial rate of return to 9.5% from 10%, which some observers think is still too optimistic. IBM's overall pension-fund assets declined 12% last yr, even though co's official assumption was that they would increase 10%. One newsletter writer thinks that if the market turns down again, IBM could have to start recording pension as an expense. Story also addresses other items that have boosted IBM earnings in recent yrs. Merrill Lynch analyst Steven Milunovich calculates that since 1995, 60% of IBM's EPS gains came from buying back shares and 25% came from a lower tax rate.