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

To: Jacques Newey who wrote (2228)	1/21/1998 8:03:00 AM
From: Toby	Respond to of 8219

IBM grew eps 20% over last year. Not bad for a stock carrying a pe of only 17. So they did it through buybacks? They also achieved it in an atmosphere murderous for their core semiconductor and storage businesses, in the era of the sub $1000 PC, which will never be IBM's strength, and also with strong currency effects and Asia sliding off the map. My main disappointment was that Europe was still down. Everybody is claiming currency effects this quarter, but most also had strong European results.

To: Jacques Newey who wrote (2228)	1/21/1998 8:45:00 AM
From: Jules B. Garfunkel	Respond to of 8219

Jacques, Thanks for remembering. Enclosed is a copy of an e-mail which I sent to Jack Rains this morning. "Sometimes it takes a while for the good guys to win, but hopefully we will get our due today. IBM is down now 6 1/2 points in Europe and I am hoping it will go much lower. I don't think IBM's problems will be seen as a general condition effecting the overall tech sector. If viewed correctly IBM will probably bring the rest of the market down temporarily, but as soon as other companies report good earnings, (CPQ or MSFT), the rest of the market should recover, while IBM continues down. I do think that with IBM's earnings report from yesterday, it will now finally stop the unwarranted upward momentum that IBM has enjoyed over the last 9 months. The fact that IBM is part of the DOW should result in a rapid drop in the ovedrall market as investors begin to pull out of the DOW Index funds. Hopefully Intel will then be able to regain the leadership it rightfully desreves for the tech sector, now that investors finally realize that IBM has feet of clay." Regards, Jules