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

To: John F. Dowd who wrote (7704)	6/13/2002 10:05:22 AM
From: art slott	Read Replies (1) \| Respond to of 8218

UBS Warburg does. And with a trailing PE of 18 so do I(for what that's worth). 9:27 (Dow Jones) UBS Warburg defends IBM's strategy and maintains its EPS estimates, strong buy and $120 price target. "We are chagrined that anyone would view the spinoff of the hard-disk drive business in anything but a positive light from a strategic, fundamental and accounting perspective." Analyst Don Young adds that IBM should be praised for its greater accounting disclosure, especially "considering how other companies questionable accounting procedures seem to go unchecked - such as the revenue recognition procedures of indirect PC players." (GS) (END) Dow Jones Newswires 13-06-02 1327GMT(AP-DJ-06-13-02 1327GMT)

To: John F. Dowd who wrote (7704)	6/13/2002 11:43:34 AM
From: Arrow Hd.	Read Replies (1) \| Respond to of 8218

John, I suppose the probability is that IBM is near a floor here in the mid-70s. Of course, all that is dependant upon some stabilization. Any more warnings could send it lower and a further delay in IT spending won't help but otherwise, we probably wallow around in the 70s or low 80s for a while. One of the problems for IBM share price appreciation is that the money flow directed at tech could go to other companies when the IT environment improves. There are some real franchises like EMC and Sun that have become really lean so they can perform in this drastically reduced IT environment and when things turn there will be enormous scale in virtually every measurement. When that happens IBM will go back to 120 but other companies will be multi-baggers so there will be a fight for investors dollars. Anyway, I don't know when that will happen or what the ultimate floors are but I would say that, in general, if you are a position trader or long term investor once the 2Q earnings are out in July it could be safe to take half positions in your favorite stocks. JMHO of course,