Notable Calls
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Tuesday, February 26, 2008
IBM (NYSE:IBM): Benefits of a market savvy management team
Man, the management at IBM (NYSE:IBM) sure is market savvy.
Why do I say this?
Well, they picked the best day for a profit warning.
Huh? Didn't they just up their 2008 EPS guidance?
Yeah, but given they now have $15 billion earmarked for buybacks, this alone should benefit EPS by $0.65.
Yet, IBM upped their 2008 EPS by $0.05.
So there you have it. IBM is looking like a hero for saving the day (indexes ticking green). Benefits of a market savvy management team.
NC
Why do I say this?
Well, they picked the best day for a profit warning.
Huh? Didn't they just up their 2008 EPS guidance?
Yeah, but given they now have $15 billion earmarked for buybacks, this alone should benefit EPS by $0.65.
Yet, IBM upped their 2008 EPS by $0.05.
So there you have it. IBM is looking like a hero for saving the day (indexes ticking green). Benefits of a market savvy management team.
NC
posted by notablecalls # 11:36 AM 
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No mention of any kind on the paltry 1% earnings increase with a 10% buyback...the collapsing dollar and inflation alone should increase the forecast 10% without a buyback... But, as usual, it gets surreal fanfare and the momos go insane with euphoria.
The buy back shows the inefficient business management at the high top. "Real" business leaders would seek investment alternatives with significant returns, instead buying back own stock.
Yes, IBM is run by financial spin doctors, without sense for business priorities, or sense for a motivated work force (see alliance.org)
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Yes, IBM is run by financial spin doctors, without sense for business priorities, or sense for a motivated work force (see alliance.org)
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