Arnie Berman
Arnie Berman
easiest follows recovery simple spending technology
Any technology spending recovery follows a simple principle: things that are easiest to do without come back last,
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Companies in the technology sector are clearly overcapitalized and they are going to be increasingly forced by investors to make decisions about their cash,
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I think that is clearly helping Microsoft, ... When I look at this big move, I am really thinking that people are afraid of missing out on something. That is what we are seeing here.
applied capital evidence ibm improvement issues larger last month problems rest services slow tech today transfer
HP's problems with services are not uncommon. IBM has had issues like that, too, of late. The larger problem with tech today (Friday) and in the last month has been that improvement in semiconductor capital equipment, like Applied Materials, doesn't transfer over to the rest of the tech sector. While tech fundamentals are turning, the evidence of that has been slow coming.
boost delivered earnings financial momentum positive stocks tonight
On the surface, you'll see that the financial momentum delivered by the earnings tonight was more positive than not, and stocks should probably get a little boost off this.
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Clearly there are a lot of industries in tech that are just begging to be consolidated. So the question is not whether the pace of M&A picks up in 2005 but whether it will represent a breaking of the dam.
company far ibm looks solutions though time
So far it looks good. It looks as though IBM is the company that has the right solutions set for some time now.
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The Intel numbers were actually in line with the whisper numbers, so the content is not so surprising, but the context is excellent, when you look at what happened in the quarter.
basis capital companies cyclical fact faster good investing overall pace rate recover sound spending technology terribly
How these companies sound isn't a terribly good basis for investing right now, ... The fact is that in an incremental cyclical recovery, capital spending will recover at a brisker pace than the overall recovery, and technology spending will recover at a faster rate than capital spending.
believed cycles economic great growth investors late matters secular tech
In the late '90s investors believed that tech was such a great secular growth story that cycles didn't matter. In this rebound, the only thing that matters is the economic context.
businesses companies difficult mania midst money plays public pure throw
In the midst of the mania there were a whole lot of companies that went public that were just pure plays on the willingness of businesses to throw money at new projects, ... Now that a lot of these companies have had difficult times, it makes sense that there would be consolidation.
bar deliver growth hurdle ibm leap microsoft terms
In terms of the kind of hurdle that Microsoft and IBM have to leap over, the kind of growth they have to deliver is not as significant a bar as it is for Intel.
brutal chose company example ibm lower missed number quarter results spending technology whose worse
The first quarter was so brutal for technology spending that even IBM missed the number and chose to lower the bar. But here you have an example of a company that's very big and whose results were not, in any respect, worse than expected.
companies employees focus operating reducing
The first focus for companies is reducing operating costs, squeezing the most out of your employees and restraining headcount.