IBM needs to lose 150,000 employees to get competitive with the rest of the industry. They're incredibly aware of this problem. You can bet that these small layoffs are only the beginning. They've done it before - they'll do it again. In 1993 they fired 250,000 employees - half the company. It's on the way, and once it starts, the stock will be on autopilot to the moon.
AAPL revenue per employee = $2.8 million
HPQ = $356.000
GOOG = $1.4 million
ORCL = $310,000
MSFT = $1 million
INTC = $516,000
AMD = $597,000
IBM = $230,000
IBM reported asked for 6 billions for server business and got 2.3 billions instead. 7000 employee times 6000 transfer cost - that is 42 millions restructuring charge.
The write off of 6-2.3 billions could mean another write off of 3.7 billions goodwill. If you dare to hold it for the next 2 quarters, good luck.
It seems to know what's it is doing. I just want to ride the wave when it is going up. 170 is my tentative entry point. It's dead money for now until I see RSI hits below 20. IBM is facing cloud competition with decreasing market in hardware. I would want to invest in a company that has already turned around not when it is restructuring. It takes years for a titanic to turn around. It took HP 3 to 4 years. My investment in DFS in 2009 has gone up 3 times already. I am adding to my position and it continues to rise while IBM is falling behind. DFS will catch up with Visa and Master Card in valuation. I will buy IBM when the price is right and show sign of rising and turnaround, not when it is sinking and drifting lower. The titanic is too big the fixed cost, when its sales are not moving, low margin and low morale.
It could be a shame to work for IBM now because it could mean low wage. It comes down to valuation, when there is no growth, P/E should stay around 10 in my view and therefore 170. Not enough margin of safety for me get in yet. Investing in IBM will take a long long long term view. Fund manager needs to show result and will exit when there is no progress. This is what's happening right now.
I am not a ibm employee, but have many, many friends that are employees there. There are no ill intentions to under perform on their behalf. They are a product of their environment.
My intention to post on this forum has nothing to do with my equity position at ibm. I am merely stating the facts regarding the current state of affairs at ibm and the end resultant .
"Low morale = Low productivity. Trust me, workers at IBM don't care anymore. Their work quality is suffering proportionately to their feelings about how they're being treated. Life@IBM is not good. That's the truth."
So that's how you feel. I assume you are doing enough to avoid being discharged for cause before you find another job.
You are implying that other IBM employees will intentionally underperform so that IBM loses customers and revenue. And by doing so expose themselves to termination for cause. And they will be doing this because other IBM employees were laid off.
Most people, apparently not you, have mouths to feed, tuition to pay and retirements to fund, and beyond that have ethical and professional standards to guide them.
Low morale = Low productivity. Trust me, workers at IBM don't care anymore. Their work quality is suffering proportionately to their feelings about how they're being treated. Life@IBM is not good. That's the truth.
yes , and you can expect Godot to arrive sometime ...
ps ... rates are only going to rise when the economy is booming ..
it's like oil was a few years ago ... that rise signalled strength in the economy , not a derailing feature ... g
sounds like you still do not realize that IBM is in transition .. takes a little while ....
back in the day .... Ford/GM/Chrysler used to idle their plant to retool for new models ..
biz didn't look good , usually in Q2 , then back to the races .... IBM has been gutting it's
hardware for 20 years and building new business models ... if you think that the execs
don't know where the money is , then buy a different stock , fact is those folks are a whole
lot sharper than any of us ..
part of investing is trust the leaders of a company , even when you don't have all of
the pertinent facts , that are never included in the pr's and sec driven reports ...
TRUST .. if it isn't there , then keep walking , if you can trust , then show it with your
money ... g
pssst ... here's a nasty little secret ... in order for a company to grow large and make lots
of money , the preferred method is one honed in Medieval times .... estate lords have
been replace by ceo's and exec teams ... no changes for the serfs ... it's a proven
model ... companies now realize that labor is a commodity and price can be bid down ..
study a bit of history and see how behemouth companies were built , like Standard Oil ,
US Steel and many others , then find out what working conditions were like and easily
a person could get fired and replaced , virtually no concern for employees , there wasn't
even a concern for safety , yet those companies grew larger than life ..
also , with a bottomless labor market , full of starving individuals who will work for
very little , there is no incentive to coddle current employees ..
i don't like that any more than anyone else ,but i also believe that a person should
go through life with their head stuck somewhere ...
HOW TO STAND A CHANCE TO SUCCEED ..
1) face the facts
2) buy a can of paint and a 4 inch brush
3) find a wall
4) write 4 words on the wall ..
LIFE IS NOT FAIR ... start with that premise and you have a chance ,otherwise , you
will just cry in your cups until they overflow ..... g
If the bondholders had panicked and sold they'd still have their money. If the bank depositors had panicked and moved all their money it would not have been confiscated. Problem is that you translate every investment on earth into something that affects U.S. stocks. Some do and some don't. But the safety net for U.S. stocks is vanishing quickly so if I were you, I'd change my thinking. Tons of investors had the same kind of view in 1929 and they ignored the warning signs just like you.
Copper at 5 year low and falling on dramatic slowdown in China.
Japan stock market down over 1000 points since the pre-Putin high last week.
German and Swiss bonds surging.
European equity and debt markets in free fall.
Yen carry trade collapsing.
U.S. treasury yield hammered down 10 bps in 1 hour - biggest drop in 2 months
VIX takes longest low to high run in 6 weeks
and let's not forget: Russia invading Eastern Europe
Just like all the losers who panicked and sold when Greece was about to default and got back in too late when it turned out to be a nonevent. Losing money is just a habit for all those who follow, and react to, all the geopolitical events. They are called long term losers.
When I click on the names you see common phrases and emphasis, and they reply to each other on various boards.
And they have the same nasty streak. He likes to correct others with insults.
The common MO is to threaten that horrible things will happen to various stocks or the market in the future.
It's one poor dude who was wronged by IBM somehow. It's a serious blue fetish.
He's not going away. Although he says IBM might within 5 years.
IBM Board Monitor