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

To: art slott who wrote (2292)	1/26/1998 11:37:00 PM
From: Earlie	Read Replies (1) \| Respond to of 8220

Art: IBM is the only company I know of that resorts to "constant currency" sleight-of-hand. Even if you accept this, a doubling of the stock price does nor equate with the paltry revenue growth. What about the earnings decline, is that not consequential? Should one not be concerned about the decline of high margin revenue and its replacement by lower margin revenue? What about the earnings/revenue "warning" provided by the company in its telephone conference call? How much longer do you think IBM can continue to borrow money to buy back stock? What happens to its stock price when it can no longer provide this artificial market stimulus? I have no current position in IBM, but the facts suggest further share price discounting is likely. Keep in mind that it sold at $48 some 18 months ago on essentially similar performance numbers, higher quality revenues, and a stronger balance sheet. An Asian crisis also did not exist at that time. Best, Earlie