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 : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: The Player who wrote (4195)	1/8/1999 10:34:00 AM
From: Grabs	Read Replies (1) \| Respond to of 4509

Just read a Salomon Smith Barney report which details various reasons why an IBM buyout is unlikely. They attribute the recent strength obviously to the rumor, but as well to the potential that since PSFT did not pre-warn, that they may have had a good Q4. Here's a brief summary paraphrase of their reasons why an IBM merger would not make sense: 1. IBM's existing SAP business would be impacted including consulting and hardware related business. 2. With IBM as owner, PSFT's business could be at risk because it's so consultant driven that having IBM as ownership would impact referrals from Anderson, Price Waterhouse, etc. 3. It would be against IBM's new focus on the database 4. they question the benefits of the complete "vertical stack" approach 5. cultural issues. That's it in a nutshell. I hope that the strength is more based on a good q4 than on an IBM rumor because if the truth comes out that IBM is not buying PSFT, we will be in the upper teens again. JMO- I'm long this stock as well. Grabs