Steven Milunovich
Steven Milunovich
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,
consultant looking people point
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.
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.
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.
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.
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.
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.
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.