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

To: Jules B. Garfunkel who wrote (4862)	3/28/1999 5:56:00 PM
From: Robert Scott Diver	Respond to of 8218

Jules, Revenue and EPS are the name of the game. All things being equal GPM is significant, but sacrificing revenue and earnings for GPM would be stupid. Quantity of earnings is at least as important as quality. Quality of earnings and revenues is hard to define and quantify. Quantity is easy to measure. Businesses exist to produce earnings. Shareholders buy earnings, not GPM. If GPM was key, Walmart would be a bad stock to own. JMHO. Scott

To: Jules B. Garfunkel who wrote (4862)	3/28/1999 9:56:00 PM
From: WebDrone	Read Replies (1) \| Respond to of 8218

Jules, I'm no bean counter, PC division is a net LOSING MONEY operation for IBM, no? Wouldn't a solid OEM commitment - in lieu of IBM brand boxes - result in a net increase in margins overall? That is, providing the IBM brand box expenses are cut. I can imagine a lot of reasons why IBM carries the PC products group, from a whole-company perspective. However, I can also imagine how a partnership letting Dell handle the desktop PCs could achieve these goal at less cost, perhaps even at a profit. If this allows IBM to focus on higher margin arenas (service, software, servers, networking, laptops...) then life is good. Also, in terms of hype, a partnership between old, steady, boring, business IBM and young, dynamic, super-stock of the 90's Dell has got to look like a stock broker's dream. Hitch IBM to Dell's hype wagon, and sell the stock. Anyway, hype is just hype, and I'm in this one for the long long haul. However, I would appreciate discussion on how net margins are effected since the PC Desktops are struggling manfully to rise to break even- at least, that is how I read the 10K. I expect I've got this wrong- so somebody call me an idiot, but state your reasons, please! Web