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

To: Ibexx who wrote (4766)	3/6/1999 12:39:00 AM
From: Jules B. Garfunkel	Read Replies (1) \| Respond to of 8218

Ibexx, You are correct on both points, "IBM, as it stands today, is much better positioned than it was two years ago when Jules began to short this stock." But Ibexx, I have adjusted my short position accordingly, as I observed IBM go from a 14 P/E multiple, and a rudderless company two years ago, to today's 26 P/E company focused on being, just as you said, "a serious software/internet company (in part) which should command a much higher P/E multiple than a conventional box company." However, if you have followed my posts from the beginning, you will recall that I entered into a short position in IBM as a hedge to protect my profits in INTC, CSCO, and ALTR. Today, while I acknowledge that IBM deserves a higher multiple than it did two years ago, I am not sure that higher multiple should be almost double. I still feel that as an investment, Intel who showed a growth in revenues of 16 % + and a P/E multiple of 32, is much better than IBM with its 6 % growth in revenues, last quarter. Therefore, I continue to use IBM as a hedge against my other holdings, and consider my reduced short position in IBM, as an insurance policy. Jules All, My posts here are intended to induce intelligent dialogue. I do not post here to receive name calling. I am always hopeful that someone here will respond to my observations on IBM intelligently and convince me that I am wrong. However, it should be done with facts, not insults.