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

To: kvkkc1 who wrote (7644)	5/1/2002 10:53:33 AM
From: art slott	Read Replies (1) \| Respond to of 8218

~~ IBM Core Debt = $531 Million ~~ by: this_is_a_kool_stock (48/M/New Jersey) Long-Term Sentiment: Strong Buy 04/30/02 09:55 pm Msg: 137358 of 137451 www.sec.gov/Archives/edgar/data/51143/000089155402002124/0000891554-02-002124.txt ===================================================================== From of the 3/31/02 Earnings Release Conference Call +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ <<<This strong performance enabled us to continue our investments: We put $1.3 billion in capital expenditures . We used $1.8 billion to buy back about 17 million shares, leaving us with $2.8 billion remaining in our last Board authorization at the end of the quarter. Notice that our Global Financing Assets, other than fixed assets, generated an additional half billion dollars in cash over last year's first quarter. Strong cash flow leads to a strong balance sheet. Let's look at that next -- chart 11. And the balance sheet remains very healthy. Cash on the balance sheet stands at $4 billion, just above a year ago. Total debt decreased $3.9 billion from a year ago. Global Financing debt was reduced by $2.7 billion, in line with a reduction in Global Financing assets. 98% of IBM's debt was in support of Global Financing and was leveraged at a comfortable 6.6 to 1. Core debt was reduced by an additional $1.2 billion year-to-year to $531 million and stands at a conservative 3% debt-to-capital. Asset, debt and leverage levels continued to receive high focus, and it shows in our results. There continue to be articles suggesting that IBM has leveraged its balance sheet in order to buy back stock. The simple fact is that a financing business is based on leveraging debt. <Page> We do that conservatively, and our debt is directly tied to our financing assets. It grows or shrinks as those assets do. Excluding Global Financing, IBM has virtually no debt.>>>> ====================================================================== WOW ! Let me see if I understand this correctly. At 3/31/02, "Cash on the balance sheet stands at $4 billion ( with a "B" ), just above a year ago." At 3/31/02, "Core debt was reduced by an additional $1.2 billion year-to-year to $531 million ( with an "M" ) and stands at a conservative 3% debt-to-capital." "Excluding Global Financing, IBM has virtually no debt." AND, .......... here comes the BEST part ................. if and when the Hard Disk Drive Joint Venture with Hitachi closes, Hitachi is going to pay IBM for their hard drive assets, as noted in the article below. How kool is THAT ? Long and Strong on Big Blue who has Core Debt of $531 million ( with an "M" ) and Cash of $4 billion ( with a "B" ) //biz.yahoo.com/rb/020416/tech_ibm_hitachi_2.html =================================================================== <<<<ARMONK, N.Y., April 16 (Reuters) - IBM Corp. (NYSE:IBM - news) and Japanese electronics giant Hitachi Ltd. (6501.T) on Tuesday said they have agreed to collaborate on data-storage systems and to form a joint venture for hard disk drives, a sore point for IBM in recent years. Hitachi would own 70 percent of the hard disk drive joint venture and pay IBM for its hard drive assets, subject to the completion of negotiations, the companies said. IBM's disk drive operations employ about 18,000 people worldwide and generate several billion of dollars a year in revenue. Hitachi is expected to give the joint venture an economy of scale now missing at IBM, improving the business' bottom line. Terms of the joint venture are still being negotiated, IBM senior vice president Nicholas Donofrio told Reuters. He declined to comment on whether any jobs would be cut.>>>> Message Thread [ View ]

To: kvkkc1 who wrote (7644)	5/1/2002 6:52:57 PM
From: Skeet Shipman	Read Replies (1) \| Respond to of 8218

Raising the dividend helped offset an other wise negative experience of attending the stockholders meeting. I remember when companies use to wine and dine, making their shareholders feel like owners. At this year's meeting you were made to feel like something that unfortunately had to be tolerated for a short time each year. In my opinion shareholders need to retake their ownership position of companies. Perhaps requiring companies to have two slates of directors one from management and one from the shareholders. I would really like to know more about the individual members of the board of directors who are supposedly representing me, as a shareholder.