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. |
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. |
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. |
are not screaming bargains yet. |
At a price-earnings ratio about 85 percent of the market, IBM is not historically inexpensive. Revenue growth will need to hit double-digit for the stock to appreciate. |
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. |
can handle such a big job herself. |
Clearly they were bullish and they were really pointed to (the fact) that IBM is getting a benefit from the Internet, |
Clearly they were bullish and they were really pointed to (the fact) that IBM is getting a benefit from the Internet. |
high performance computing company. |
I think this Internet gold dust can be sprinkled around a bit. |
I'm looking for a new challenge. There comes a point when, as a consultant who suggests to other people what they should do, you want to do it yourself. |
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? |
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. |
Most vendors will face pressure as Asia worsens. |