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

To: A 42nd Skeptic who wrote (8039)	4/12/2005 2:50:21 AM
From: Elroy	Read Replies (1) \| Respond to of 8218

A PE of 17.5 seems pretty low for a company with the the strength of IBM. Why is 17.5x low? HPQ is about 13x. IBM's EPS growth is only low double digits, so 17.5x sounds about right. Also, half of IBM's revenues are from IT services, and this area is likely to experience price pressure for a decade or two due to low cost competition from India, et al. That's fundamentally UNATTRACTIVE. Which corporation wants to pay an IBM IT service worker $100/hour when they can pay an Indian IT service worker $100/day?