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.

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

To: Robert Scott Diver who wrote (2938)	4/23/1998 6:58:00 PM
From: art slott	Respond to of 8220

In an interview on the Bloomberg Business Channel a money manager said IBM's profit margins are improving and the stock will split again when it gets around 150! I concur. Great showing today, its time for IBM's and Msft's market value to equalize. Art

To: Robert Scott Diver who wrote (2938)	4/24/1998 1:16:00 PM
From: Jules B. Garfunkel	Read Replies (1) \| Respond to of 8220

Hi Scott, Take a look at all the joint venture development efforts being announced recently between IBM and Intel. While this will eventually be a positive for IBM in the long run, over the short term and because IBM is the incumbent, it will translate into a further deterioration of hardware revenues. For Intel it is both long and short term positive. Intel is moving up into relatively new markets for them. The Enterprise Server, Workstation and eventually Mainframe markets are all relatively new market segments for them which provide much greater margins than Intel has enjoyed previously. IBM, will now have to share these new hardware replacement markets with Intel. IBM therefore, can only hope to retain their customers in order to sell them other lower margin IBM products, i.e. storage devices and services. Jules