Steven Milunovich
Steven Milunovich
again average europeans increase looks percent
The average increase looks to be about 3 percent with the Europeans again being more optimistic.
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.
calculate earnings expense few income option practices press pro statement writes
The press writes about questionable practices such as excluding option expense from the income statement and the use of pro forma earnings, but few calculate the earnings impact.
appear
This transaction does not appear to be unusual.
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.
doubt good last news rally stage tech
The good news is that tech is getting oversold and could stage a rally, but we doubt the rally would last long.
asia face pressure
Most vendors will face pressure as Asia worsens.
ibm next roaring second year
Next year IBM is probably going to come in roaring back into the second half, but in between it's a mess,
adapting budgets companies corporate demand figure focused includes last networking pcs upgrade
Many corporations upgraded their PCs in preparation for Y2K, which boosted demand last year, ... If you figure on a three-year upgrade cycle, companies will not feel a need to upgrade in 2001. Corporate IT budgets are focused more on adapting to the Internet, which includes networking hardware, storage, and e-commerce software.
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.
appears continue dip double early economy moment recovery
It appears the economy is approaching the moment of truth. Will it double dip as in the early 1980s or continue to recovery as in the early 1990s?
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.