IBM's overall earnings grew bacially 3% last Q. The rest of the growth is smoke and mirrors, mostly from large stock buy backs. Question, could IBM's overall earning be set back 3% by Asia. A: Very easily. This would give them flat growth. They were not making any money in PC's before Asia problems. Dell and Compac have won this war.
The ownly thing that holds this stock up is that the intutions like it. I doubt that they like it when earnings are flat. The Wall Street Journal just had an artical questioning the quality of there earnings. This stock is on thin ice. I sold at 100.
I had held this stock for over two years, and felt that they can on longer cut costs and jobs the improve margins. At this time I have no positon in this stock long or short. I see low 90s in Jan 98. 80s in the middle of the year due to the lack of earning growth.