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To: Mao II who wrote (54172)	3/19/1999 5:39:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

Niles was interviewed about IBM. Concern about IBM hardware sales; doubtful that growth in services will be 20% as it was in 4Q, and whatever it is, probably not enough to compensate for slowdown in hardware. He made the point that even if they make their gross revenue numbers, they may not meet their net expectations because margins are reduced. He pointed out that, as always, the quarter is back-end loaded and the last two weeks are critical. Recommendation: continues to see it as "interesting" under $170. Four brokerage houses commented today, including his company, wryly expects that the other analysts will make their comments on Monday. The "news" will be then out. If you are Holding continue. If you want to buy, wait for it to settle and then BUY. IBM is a great company, with a great vision, he said. Yours, Victor or Somebody

To: Mao II who wrote (54172)	3/19/1999 5:46:00 PM
From: Kenya AA	Read Replies (1) \| Respond to of 97611

M2: Don't be soooo impatient - I can't type that fast! He basically talked about IBM, but did mention the boxmakers in general a couple of times. He said he shared the concern of Cramer at MS about margin pressure in the mainframe area that may cause IBM to report lower than expected numbers. Cited business in January and February was slower than expected. Maria said that ML had come out in the afternoon and was more upbeat than MS. Niles said expectations for IBM was in the range of 1.40-1.42. He thought they would now come in in the mid-1.30s. Said that's not enough of a shortfall for IBM to pre-announce. Maria asked if Niles thought that they could make up the difference in other areas like service. Niles said he didn't think so. Next two weeks are critical if they are going to make original estimates. He's bullish on IBM long term and would look to buy under 170. He didn't seem concerned at all for the longer term. K Also said the IBM bottom will probably be on Monday.