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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (27784)	4/29/1998 10:40:00 AM
From: Mike M2	Read Replies (1) \| Respond to of 132070

Mike, i know you are not big on mkt technicians but do you recall hearing much about Edson Gould in the 70's he is reputed to have made some RAZOR SHARP calls on de mkt. Mike

To: Knighty Tin who wrote (27784)	4/29/1998 10:07:00 PM
From: Earlie	Read Replies (1) \| Respond to of 132070

MB and Mike: Glad to see you two and a few of the others taking up arms about IBM's accounting. I raised a bunch of issues last quarter on the IBM forum and also with some of the press and received a blast for my troubles. I suspect that Louis has a number of other interesting accounting activities on the go, but which are not easily proven. I find it interesting how his service revenues have increased just enough to take the sting out of decreasing revenues in maintenance, software, and hardware (all much higher margins, by the way). Sometimes a scam is detected by the degree of coincidence it provides. There is also plenty of room for IBM to play games in terms of how much revenue it choses to book in the early stages of its service contracts. As well, I wonder how many Y2K promises have been made in those service contracts? Certainly there are plenty of rumours around about this topic. No matter how one cuts it, IBM has provided flat to down revenues and flat to down profits for many quarters now, yet the market is paying $115 today, when one could have bought plenty for less than $50. some eighteen months ago. Shareholder equity is in free fall as well, as Louis continues to borrow to buy back all that nice stock. In the end, it will not go well for Louis. It's one thing to run an accounting scam in some OTC situation, but they will have a very public hanging on the back side of this one as every widow, orphan and lazy fund manager in the land owns it in spades. Can't wait. Best, Earlie