Revenue is on track to match 2004 (if they can halt the decline). So with PE=13, why is the stock worth any more than the level back then (around $90)? And that view is optimistic because the world economy was not in a complete reset in 2004 with Japan doubling their monetary base and European countries nearing default on catastrophic amounts of debt.
Do you really believe GR's statement that they just need to close a couple of open mainframe and software deals? How are they going to deal with an employee base of 467K with fully burdened cost per employee above $100K? That's nearly $50 billion of headcount expense. And most of that expense comes from acquired employees in new companies that they can't really afford to lose right now.
Glad I walked away when Palmisano left and cashed out all my vested options and restricted stock.
are you trying to rationolize the fact that you lost money on IBM simply because you didn't stick it out and you sold last year? Now you are getting back at IBM with all of these mathematical formulas and trying in vain to tell all of us "to get out"? Will you feel better if we all sold?
No. I think you should stay in. Not a single sentence that I wrote mentioned what I think anyone else should do. I just said that I'm glad to be completely out and I gave a few reasons. You should do whatever you want - that's what makes a market. I'm not long or short IBM - just out.
For starters, "Do you really believe GR's statement that they just need to close a couple of open mainframe and software deals?" is something no IBM employee said. You either have no clue or it's merely a smear -- those are your words not "GR's".
You don't have a clue about IBM. All revenue dollars are not the same -- some revenue dollars have more profit than other dollars, get it?
Go back to 2004 and find annual profit #'s and compare them with today. Start with Operating EPS of $16.70 and see what it was for 2004. Then try comparing Gross Margin & Operating Margin, if you can.
"Glad I walked away when Palmisano left and cashed out all my vested options and restricted stock"
LoL! The janitorial staff will never be the same.
Right. Sure. And that's why they are preparing to fire $2 billion of headcount cost in the current quarter and sell the only viable hardware business left to China. Meanwhile the only business that is showing any growth is Global Finance. But you think they are more profitable than in 2004.
IBM $194K revenue per employee
AAPL $3 million per employee
And Apple fully burdened cost per headcount is nearly half.
Yet Apple is having their own financial problems.
In 2000 IBM had 80% of the current revenue, 1/2 the number of employees, and they were worried about the cost.
So how is IBM ever going to survive this catastrophe?
And when the stock falls sharply they get killed on their own portfolio because they've bought back hundreds of millions of shares.
"And when the stock falls sharply they get killed on their own portfolio because they've bought back hundreds of millions of shares."
Please explain how this killing will take place.
Try simple sentences with small words that lead to a conclusion that, "they get killed on their own portfolio."
By the way - You misunderstand the term "retired." My birthday is June 1970. That might seem old to you but I think "grampa" is a little extreme. I suppose if you really wanted to, you could do a little homework and figure out exactly who I actually am. Let me know when you have a name.
Treasury stock is a contra equity that offsets common stock. It reduces stockholders' equity. Eventually the company will sell some (or all) of the stock it owns. It's certainly not advantageous to have the value collapse.