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

To: Knighty Tin who wrote (34251)	10/20/1998 6:39:00 PM
From: Knighty Tin	Read Replies (3) \| Respond to of 132070

To all, notes on the IBM joke: 1. Gross margin down more than 1%. 2. Tax rate down 1.5%. How many quarters in a row can they have a lower tax rate and still claim they are growing eps? Doesn't any analyst reconcile their bottom line with reality? 3. Cash was down 22.3%. They are sucking it up, big time. See note 4. 4. Debt was up 5.8%. IBM is really busy extending credit to people who cannot pay it back to pad their revenues and short term eps. 5. Stockholders equity was down 2.2%. However, the big deal, as always, is what the heck are they recognizing as service revenues? And how many decades into the future will they be delivering the services they are today calling revenues and profits? That is the area where we never get a solid answer. Despite the fact that the report stank the house out, look for the herd to fall for the bottom line massage and take the stock up tomorrow. MB