Steven Milunovich
Steven Milunovich
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.
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.
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.
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.
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.
people realize starting technology
People are starting to realize that technology is cyclical.
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.
cautious company guidance
Tepid company guidance makes us cautious in extrapolating.
dust gold internet
I think this Internet gold dust can be sprinkled around a bit.
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.
asia face pressure
Most vendors will face pressure as Asia worsens.
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.
again believe complete due force goal increasing main previous revenue review sales services
We believe that this services review -- due to complete in mid-August -- is necessary, but will again detract from the main goal of increasing revenue just as the sales force realignment did in previous quarters,