Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (180906)	7/17/2002 6:13:27 PM
From: Earlie	Respond to of 436258

MD: Take a look at the way these rascals are "hollowing out" the company. The balance sheet numbers tell the tale. The shareholders own less every quarter. A bit of debt? Nah,.... what's 25 billion among friends (and can you find the other forms of debt lurking on the balance sheet?). I wouldn't want to own their debt paper on a bet. Incidentally, do you suppose the fast waning "residual value" of all those outstanding mainframe leases is shown,..... or compared with the actual market value of the underlying gear? NOT! That would put the whole thing in the deep end of the pool. And IBM continues to sign up all that "service contract business". The company's competitors in this sector have moaned loud and long about the non-existent margins to be had these days, so I suppose it is IBM's superior efficiency that allows them to sign up this stuff and make a profit,..... at least in the first year or so of those multi-year contracts. Have to love that hard drive deal and the way it has been orchestrated. If it hadn't been sold, IBM's results would have been an unmitigated financial disaster. As it is, they try to scam their way around the mess with fancy accounting. No changing of spots here. Best, Earlie