Steven Milunovich
Steven Milunovich
appreciation believe both confidence earnings figuring growth higher ibm key optimistic stock technology
We believe that IBM is a second-half story and now we're there. We believe earnings growth should take the stock higher and we'd be even more optimistic if we had confidence in execution. We think the key to long-term appreciation is figuring out if IBM is a new technology or old technology stock. It's some of both now.
accounting approved believe company proper reports reviewed seems
We believe that the accounting seems to proper and the company reports that it has been reviewed and approved by its auditors.
dust gold internet
I think this Internet gold dust can be sprinkled around a bit.
people realize starting technology
People are starting to realize that technology is cyclical.
driver palm pc research technology
The PC is not the driver of technology anymore, ... We are big believers, however, in handheld devices, such as those made by Palm and Research in Motion. A lot of applications are going to migrate to handhelds.
again average europeans increase looks percent
The average increase looks to be about 3 percent with the Europeans again being more optimistic.
across becoming due growth industry internet solid suggest sun unix
suggest that UNIX server growth across the industry is accelerating due to a solid Internet build-out. Sun is becoming the new IBM.
acting beyond company double entire grow hardware leader pcs position product storage work
Beyond Y2K, IBM's hardware business, PCs and storage servers, it's not been acting well. They are not a leader in many of those product lines. I think they still have more work to do to get into the position where the entire company can then grow at double digits.
along although analysis cost deal per powerful puts result savings support takes trade
Although there are puts and takes along with substantial integration risks, we think our support of the deal will be rewarded. Cost savings and a more powerful vendor should result in a trade to at least the mid-$20s; our sum-of-the-parts analysis comes up with $28 per share.
although appear ceo concerns contract increasing mature order perot signings suffered time
Although (IBM) CEO Gerstner said in May he has no concerns about services, we do. EDS, SCS, and Perot have each suffered recently. Contract signings appear solid, but the time between outsourcing order and implementation may be increasing in the mature U.S.
best durable figure flat goods increased ratio report seen since tech
This is the best tech durable goods report we have seen in a while. The book-to-bill increased to 1.07, the best figure since September, while the inventory-to-shipment ratio was flat at 1.14.
conclusion flat modest spending split users
This contrasts with some surveys that find flat to down spending in 2002. We wouldn't split hairs; our conclusion is that users see a modest pickup.
although attractive bargain basement communication fallen hardware looking lower relative remain since software stocks tech technology trading
Tech valuations have fallen by about one-third since early-September. Although technology stocks are not at bargain basement prices, semis, communication equipment, and hardware are trading at the lower end of their five-year ranges. These sectors are also looking attractive relative to the S&P 500. Wireless, storage, and software remain expensive.
cautious company guidance
Tepid company guidance makes us cautious in extrapolating.