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

To: Jim Koch who wrote (4076)	10/23/1998 5:01:00 PM
From: tom r. phillips	Respond to of 8218

OK, Jim, i agree that it looks like GE is going down the toilet. :-) thanks for your thoughtful analysis and good luck with your puts and calls. tom phillips

To: Jim Koch who wrote (4076)	10/23/1998 5:16:00 PM
From: Robert Scott Diver	Respond to of 8218

Jim. Excellent post Thanks, Scott

To: Jim Koch who wrote (4076)	10/23/1998 5:36:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 8218

Jim the IBM Fan (nudge, nudge, wink, wink), You almost had me believing you were serious until you started quoting the empty suits at the credit rating agencies. You know, the ones who gave Orange County the Double A rating until they declared bankruptcy? And the same high marks for hundreds of other current bankrupts. That is where your joke message broke down, because nobody who knew anything about credit would ever quote those dolts. This was a great put on message and I'm still laughing. I will look up your other notes and see if you have any other funny stories lurking around these threads. Dave Berry, watch your back, because this guy is funny. MB

To: Jim Koch who wrote (4076)	10/24/1998 12:40:00 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 8218

jim, if long term debt went up $5 billion since 1996 and ibm spent that much (and more) on stock repurchases, doesn't it stand to reason that if there were no stock repurchases there would be no need to increase debt. yes or no would suffice ;-) btw, i didn't say ibm wasn't using their capital wisely. i don't think they are. that is jmho. the market will decide if they are using capital wisely. many ponzi schemes also use their investments wisely, too. my main point is that if ibm's stock price ever reflects their 7% growth rate then all those stock repurchases at double that amount will look extremely stupid and cause much damage. perhaps a 23 pe is sustainable given a 7% growth rate. we'll have to see. btw, will ibm be able to continue to buy $7 billion worth of stock a year w/o increasing debt? yes or no? ;-) you guys need to study opportunity cost. if you spend your dough on buying back stock then it is not available to spend on something else. so you borrow to spend on something else and you guys think the transactions are utterly unrelated. duuuuuhhh weeeeeee.... ;-)