Conference nyoss1::market_investing

    slight tangent, but can we use QUOTE to obtain other prices than DEC's?

    Earnings were good, but not as good as analysts had expected. Trading
    was delayed for quite a while at the open as there were more sellers
    than buyers.
    
    Harry
    

>    slight tangent, but can we use QUOTE to obtain other prices than DEC's?

        The short answer is `No'.  There are various services you can
        purchase that will give you live quotes, and Digital even has
        software to manage it (right, Pat?), but I don't know about that.

        The long answer is that the quote server is ultra-efficient, but
        the efficiency prevents it from being expanded.  When a price
        request is made, the server rejects the connection request, but
        the error code contains the price information.  This is less
        reliable than creating a connection and sending information over
        the connection, but it usually works and uses the minimum number
        of messages to send the information.  The drawback is that the
        amount of information that the server can distribute is limited
        by the number of bits in an error code.

        However, the same server and user code could be used to set up
        another service to provide information about another stock.

        					B.J.

    One of the CLARI. bulletin boards has a list of technology stock
    quotations two or three times per day if you're interested in setting
    up USENET access.
    
    michael moy

>        The long answer is that the quote server is ultra-efficient, but
>        the efficiency prevents it from being expanded.  When a price
>        request is made, the server rejects the connection request, but
>        the error code contains the price information.  This is less
>        reliable than creating a connection and sending information over
>        the connection, but it usually works and uses the minimum number
>        of messages to send the information.  The drawback is that the
>        amount of information that the server can distribute is limited
>        by the number of bits in an error code.
>
When John diode::crowell first wrote quote, it used the full decnet handshake
sequence to connect and send messages... As the program was distributed around
Digital, his poor microvax II was swamped by the number of network connects,
and he made a small but elegant change to the method of providing the info. The
pain on the node to service the rejected connections in almost non-existant.

Of course quote almost got turned off by corporate when the market was closed
one April 1st and the price was randomly displayed as numbers from 0 to several
thousand a share... Seems someone paniced and then complained.

Dan "who hasn't seen John since we skiied Killington on 5/17/92" Buckley

    Ok, I'll buy that.  Quote cannot be used for other stocks.  Sounds
    reasonable given the design limitations.
    
    But then what was used to create the quote in the base note?  The
    format looks exactly like quote would output it.
    
    /Skip

    RE: .5
    
    As I recall Eric Postpischil contributed to the creation of the quote
    application.

    
    I made the original bad attempt which killed my node. Eric came up with
    the clever "connect reject" scheme which has been running on DIODE::
    for years..
    
    DIODE:: is now VS3100 M38, it served about 3,000,000 quote requests
    in the last month with a total of 40 minutes of CPU time charged.
    
    The server doesn't effect the system except once in a while when
    the network has some problem. It gets connections but can't break them.
    It's like the network path is inbound and not outbound.  If you
    DISCONNECT the links 32 new ones will form in a second or two.
    
    Jon
    
    -- Hi Orb, I'm running the ski house this year.  The other Ken retired
       too.

    
    Any idea of actual max served rates per minute ?
    
    It is sort of important for a project I'm consulting on ?
    
    			regards,
    
    					Wlodek

    RE: -1
    
    >> -< At 85 1/2 and a $1.21/shar div. = GOOD YIELD >-
    
    IBM pays $1.21 PER QUARTER or $4.84 per share per year.
    
    That calculates to a 5.66% dividend yield.  Better than you can do with
    a lot of investments.  Plus, I think the upside potential at 85 � is
    very high indeed.  I have been aquiring IBM stock for the past 8 months
    at prices of 85, 88, and 90.  I still think its a great investment.
    
    --Don

    
    Re: .-1
    
    But Don ... IBM stock has been at the 80 - 90 price for how many years
    now (2 or 3 yrs now) ???  I see your point though, that they can only
    get better (stock higher).

There's no such thing as a stock with only upside potential.

    Seems Wall Street might be getting wary of IBM having enuf future
    cash flow to cover the current 1.21 dividend level.  The golden goose
    mainframes aren't giving them the same margins they used to, and
    they seem to be hunting and pecking trying to figure out what to
    do in the PC space.  Good thing their AS400 line has no competition ;-)

    re: .15
    
    True, but if IBM's earnings go down so will their dividend...
    

    Its a 9 year low... and I doubt that dividend will last past next
    quarter.

    maybe some of that dividend money may go for the restructuring charge
    for the 40k cuts?
    
    John

    It must be getting contagous....
    
    
    IBM just hit a 10 year low at 78 7/8
    
    
    Dennis
    

    	Sun Micro was down almost 3 too.
    
    	Hi-technology is getting hit pretty much across the board.
    
    	On the good side, un-employement dropped to 7.5% from 7.6%.
    	Considering the impact of Hurricanes and GM strikes had on the
    	numbers, not too bad.
    
    	Ain't no recovery though...

    
    Can anyone  provide with IBM's earning announced for the last quarter ?
    The stock was down to $73 and IBM said that the dividend of $1.20 will
    be unaffected !! I was wondering about this. (That's 6.6% return) !!
    
    And just now is down to 69 7/8 !!!
    
    Is it a good buy at this price or wait till it turns around ?
    
    Thanks,
    /Alkesh

    > Can anyone  provide with IBM's earning announced for the last quarter ?
    
    Operating profit was $86mil before special charges.  The Boston Globe
    says this is half of the lowest analyst estimate.
    
    Net loss was $2.8 billion or $4.87 a share.
    
    						MJC

    The consensus on Wall Street is that IBM is lying through their teeth
    about the dividend being unaffected.  That's the only thing propping up
    the stock, and if they DIDN'T try and get folks to believe that, the
    stock would fall like a rock.

	Re. .24

	As the Goldman Sachs analyst said on NBR last night, IBM is a 40$ stock
	if it were not for the dividend. 

Using me as a contrarian indicator, this may not be a good time to buy IBM.  I 
bought 200 Thursday at 72.375 (6.9% div 4.84).  I also bought 200 in sept at 83.
Combined with the 500 DEC I bought in apr, I am down over 10,000.
On the other hand, I made money on the 300 IBM I sold in apr and the 200 I sold
in july (at 97.75).
I am more comfortable with my 400 IBM than with my 800 DEC.  I will be out of
the IBM within six months.  If the dividend is cut before then, I will be part
of a class action law suit. (Akers was very strong on the dividend in the annual
report and again this week.)  The street seems to feel the dividend could be cut
in 12 to 18 months.
BTW, buying or selling 200 IBM at stock cross is only $42.00

     >Re. .24

     >As the Goldman Sachs analyst said on NBR last night, IBM is a 40$ stock
     >if it were not for the dividend. 

	If IBM is a 40$ Stock this would mean a low for mor than 16 years.
	The low I recorded was on 29-oct-81 with 49$. If you're interested
	I posted a 16 year and a one year chart in regis and sixel on 

	HAM::IBM16Y.SHR and IBM1Y.SHR  (Regis)
	HAM::IBM16Y.SIX and IBM1Y.SIX  (Sixel)

	Regards
           Patrik

		US Savings Bonds		IBM

5 year rate	6% minimum			7.25% 

Type		zero coupon			stock
Payout ratio    	                        56% of earninggs
						(old Value Line number)

Risk		Zero (could be debated)		??

The question is: is 1.25% sufficent risk premium for owning IBM?

Gim

	re .-2

    >start going up BASED solely of the divedind ... Its paying close to
    >7.25 percent ... You can't get that anywhere!!!
    
	What do you mean by "You can't get it anywhere"?? In GY interest
	rates are coming down now, but still higher than 7.25 (poor me and
	my mortgage). or look to UK they are even higher in interest rates.

	Patrik

>	my mortgage). or look to UK they are even higher in interest rates.

	and the pound is quite a good rate, its a good punt for dollar/stirling
	exchange rate at the moment

	Heather

I saw a bit of CNBC early yesterday morning (10/19). They quoted some wall 
street type as saying IBM had 15% more to drop (from the 70 level that would be
around $60) if they hold the dividend at current levels. FYI

    Rumblings of a much worse than expected quarter.

    According to Graham Kemp at a recent training meeting, IBM restructured
    itself the wrong way (by industry).  Should be following EDS lead (by
    process).

Article: 2830
From: [email protected] (UPI)
Newsgroups: clari.biz.products,clari.tw.computers,clari.news.labor,clari.biz.top
Subject: IBM announces cost cutting moves, including reduction of work force
Date: Tue, 15 Dec 92 15:33:38 PST
 
	ARMONK, N.Y. (UPI) -- International Business Machines Corp. said
Tuesday it will slash about 25,000 jobs from its worldwide payroll next
year and reduce its manufacturing capacity.
	IBM said it will take a charge of about $6 billion in the fourth
quarter of 1992 to cover costs of the downsizing, which could include
the first layoffs in IBM history. It also said it expects fourth-quarter
results from operations to fall below analysts' expectations.
	Word of the cutbacks, the massive charge and the worse-then-expected
fourth-quarter performance sent IBM stock into a nosedive.
	IBM led the actives list on the New York Stock Exchange, losing $6.75
a share to close at $56.125 -- a 10-year low. Moody's Investors Service
also placed some $18 billion in IBM long-term debt ratings under review
for a possible downgrade.
	In announcing the new round of staff cuts and cost-cutting moves, the
world's largest computer maker also said it would cut product
development spending by $1 billion. Capital spending, which has been
reduced by about $1 billion in 1992, will continue to shrink in 1993.
	In Little Rock, Ark., President-elect Clinton read the news of IBM's
latest cutbacks to participants at his two-day economic conference and
expressed disappointment -- especially at the cuts in product development
spending, which he called, ``the exact thing we don't want them to be
cutting.''
	The cutbacks mark the second round of downsizing this year at IBM.
	The company already has taken restructuring charges of $4.4 billion --
before taxes -- to cover costs associated with the planned elimination of
40,000 jobs in 1992 and 1993.
	Tuesday's announced downsizing brings the total charges to $10.4
billion and boosts the number of jobs to be eliminated to 65,000.
	IBM has been shrinking for six years. It will have about 300,000
employees at year's end -- about 20,000 fewer than in January and 107,000
fewer than in 1986 when its payroll was at its peak.
	Thus far, all the staff cuts have been accomplished through attrition
and a series of voluntary-buyout and early retirement programs. IBM has
long had a ``no layoffs'' policy, but Akers said that rule might be
broken in the new round of cutbacks.
	IBM said the 1993 work force reductions will come from manufacturing
and development organizations and from marketing and services units. But
the company said it is still working out the specifics of the 25,000 job
cuts.
	``The general managers of our businesses will lead this work, which
will occur business by business, location by location, and skill by
skill,'' Akers said.
	``We expect them to make every reasonable effort to achieve the
necessary reductions through voluntary means. If current business
conditions do not improve significantly, however, it is likely that some
business units will be unable to maintain full employment in 1993,'' he
said.
	Akers said IBM also will take other steps to reduce costs, while
continuing to redirect development spending and human resources to
growth areas -- especially its service and software business segments.
	IBM was a pioneer in the mainframe computer business and the
undisputed world leader in the computer industry. It is still the
world's leading computer maker, but has lost considerable market share
because of its continued reliance on mainframes as a profit center at a
time when personal computers and servers have increasingly taken tasks
once performed by mainframes.
	``Declining hardware volumes, coupled with rapid improvements in
technology and productivity, have reduced our capacity requirements,''
Akers said in announcing the latest layoffs.
	``At the same time, our services and software businesses are showing
excellent growth. We are continuing to move aggressively into these
areas while maintaining a sharp focus on our unique ability to create
value for our customers by integrating the industry's widest and most
competitive choices of services, products and technologies,'' Akers
said.
	IBM also said it was further increasing the autonomy of its ADSTAR,
Pennant Systems, and IBM Personal Computer Co. to allow these businesses
to move with additional speed to meet rapidly changing marketplace
requirements.
	``We are moving ahead to manage these businesses as essentially self-
sufficient companies, with the expectation that they will accelerate
their speed to market and improve their efficiency and financial
returns,'' he said.
	The company said it anticipates that overall development spending
will be reduced by about $1 billion in 1993. Development expenditures
and human resources will continue to be shifted to growth areas,
including services, software, client-server computing, networking, and
multimedia.
	Capital spending, the company said, which was reduced by about $1
billion this year, will continue to shrink in 1993. It said it also
expects sales, general and administrative expenses to decline by about
$1 billion next year.
	IBM said its performance continues to be adversely affected by the
unanticipated depth of the downturn in its business, particularly in
Europe, prolonged worldwide economic weakness and hardware price
pressures.
	IBM said it believes that unfavorable business and economic
conditions will continue into 1993 and also said that, while its cash
flow remains strong, current earnings expectations make the company
unsure of its ability to maintain the dividend at current levels.
	``The actions we are announcing demonstrate IBM's continuing resolve
to deal aggressively with the difficult transition that is occurring in
the computer industry,'' Akers said.
	IBM lost $2.8 billion last year -- its first loss in history -- after
recording a raft of special charges, including a $3.4 billion
restructuring charge in the fourth quarter to cover costs associated
with staff reductions.
	For the first nine months of this year, IBM posted earnings of $498
million -- including a one-time benefit of $1.9 billion resulting from
adoption of new acconting standards and $4.4 billion in charges related
to previously announced reductions in work force and production
capacity.
	The company said fourth-quarter results from operations are likely to
be in the break-even range. Analaysts had expected IBM to show a small
operating profit for the quarter.

    Some anaylst on CNN's "Business Day" predicts that the stock will go to
    $25 and then it will be a good buy.

Maybe IBM and DEC will be neck-and-neck again -- on the way down.

    
    	Re: .39
    
    >                      -< How the mighty have fallen... >-
    
    	The scary thing is that if IBM drops to $25, it will be at 19% of
    its high.  (130, right?)  DEC is already down to only 15.5% of our
    high.
    
    							-craig

   
    	Re: .39
    
    >                      -< How the mighty have fallen... >-
    
    	The scary thing is that if IBM drops to $25, it will be at 19% of
    its high.  (130, right?)  DEC is already down to only 15.5% of our
    high.
    
    					

Not quite - IBM was trading in the 180 range as well...

Murph

Last night was the first time in a long time that I have been on Prodigy.
I looked into the business section and looked at company news, and called
up  DEC =

	This is what some analysts are saying. They have Digital on a hold,
I guess meaning do not sell. They do not have it as a buy.

If Digital goes to the 20's, I am going to scrape as much money as I can and
buy as much Digital stock as I can.

I figure you do not get a chance like this too often.

My .2 Cents

Dave

Have a nice day!

    
    	Re: .42
    
    	Oops, sorry then.  I didn't think that IBM got over the 130s.  I
    stand corrected...
    
    	Re: .43
    
    >I figure you do not get a chance like this too often.
    
    	It is interesting to reread all the replies in this topic and watch
    how many different levels of IBM stock (all going down, of course)
    generated comments to the effect of "look how low it is, it _can't_ go
    any lower!".  If DEC went into the 20s (which, incidently, is only
    3/8ths of a point away right now), I would not use that alone as a sign
    that the stock has to go back up.
    
    							-craig

RE: my note 73.26

You can thank me anytime for my advice not to buy more IBM (it was in the
70's then).  But then, I don't take my advice either.  Bought another 100
at 49 3/8 yesterday.  If the div gets cut 50%, it will yield 4.9%

    One of "the twelve silliest (and most dangerous) things people say
    about stock prices. If its gone down that much, it can't go much
    lower."

Article: 2890
From: [email protected] (JACK LESAR)
Newsgroups: clari.tw.computers,clari.biz.top
Subject: PC sales soar as mainframes fall off
Date: Tue, 5 Jan 93 15:04:37 EST
 
                     _U_n_i_t_e_d _P_r_e_s_s _I_n_t_e_r_n_a_t_i_o_n_a_l
	Personal-computer sales soared in 1992, with Apple Computer Inc.
pulling almost even with industry leader International Business Machines
Corp. in market share, while discounters Compaq and Dell made major
gains, figures released Tuesday showed.
	An industry survey by Dataquest Inc. also showed Intel Corp. emerging
as the world's top producer of microchips, and documented the continuing
decline in the market for mainframe computers.
	Preliminary results of Dataquest's 1992 worldwide personal computer
market-share survey indicated renewed vigor in the PC-market in the last
half of the year.
	Overall, the worldwide PC market grew from $43.4 billion in 1991 to
$46.5 billion in 1992.
	``The PC market has improved significantly in the last quarter with
accelerating migration to high-end PCs,'' said Brad Smith, Dataquest
vice president and chief analyst.
	IBM remained the world leader in the personal computer market, with
$5.8 billion in PC-derived revenues and a 12.4 percent share of the
market. But IBM's market share was down sharply from 1991, when 16.3
percent of the PC's sold bore the IBM trademark.
	Apple ranked second in the PC market again, with $5.5 billion in
revenues and an 11.9-percent market share, up from 11.2 percent in 1991.
	Compaq Computer Corp., which started the second-half discounting
spree and ended the year with record sales, moved up to No. 3, with $3.1
billion in revenue and a market share of 6.6 percent, up from 6 percent
in 1991.
	Japan's giant NEC -- the No. 3 PC producer in 1991 -- slipped to No. 4
in 1992, with $2.4 million in revenues. Its market share declined to 5.1
percent from 6.4 percent in 1991.
	Dell Computer Corp., a major U.S. discounter that ranked 11th last
year in market share, jumped to the No. 5 spot with $1.6 billion in
revenues and a 3.5-percent market share -- more than double its 1991
share of 1.7 percent.
	``To succeed in 1993 however, PC companies must maintain a high level
of innovation and flexibility,'' Smith said. ``Name brand will have
little, if any, impact on purchasing decisions.''
	In the semiconductor market, Intel jumped from the No. 3 spot in 1991
to take over the No. 1 spot with a 7.7 percent share. Intel's revenue
grew a staggering 26 percent to $5.1 billion.
	NEC and Toshiba -- ranked first and second a year earlier -- fell to
No. 2 and No. 3, respectively, as both showed modest 4-percent growth.
NEC had 7.6 percent of the market in 1992 and Toshiba 7.3 percent.
	Motorola Inc. had an exceptional year, with semiconductor revenue
growing 22 percent to $4.6 billion. But it remained No. 4 in market
share, with 7.1 percent.
	Japan's Hitachi ranked fifth, with $3.9 million in semiconductor
revenues -- up 4 percent from 1991 -- and 6 percent of the market.
	``The demand for Intel's 386SL and 486 MPU products helped boost
Intel ahead of both NEC and Toshiba,'' said Gene Norrett, vice president
and director, Dataquest's Worldwide Semiconductor group. ``Impressively,
Intel has more than doubled its market share in the last five years.''
	The worldwide semiconductor market grew by 9.8 percent in 1992.
	Overall, North American companies' market share increased by nearly 3
percentage points in 1992, while Japanese companies' market share fell
by nearly 4 percentage points. The mix is now 42.8 percent for Japanese
companies, 41.1 percent for North American companies, and 16.1 percent
for companies headquartered in other regions.
	``It is safe to say that 1993 will be a horse race for market
leadership,'' Norrett said.
	In general, the 1992 computer systems market showed the continued
shift from a mainframe environment to a client/server environment.
	Mainframe computers accounted for only 21.6 percent of industry
revenues in 1992, compared with 24.9 percent in 1991. Conversely,
personal computers counted for 44.5 percent of industry revenues, up
from 41.5 percent a year ago.
	IBM continued to dominate the diminishing mainframe market, with
revenues of $11.8 billion and a 52.2-percent market share. But IBM's
share was down from 55.8 percent in 1991.
	Japan's Fujitsu ranked a distant second in the mainframe market,
generating $2.1 billion in revenues to improve its market share to 9.4
percent compared with 8.2 percent in 1991.
	Hitachi ranked third, with $1.7 billion in revenues and a 7.5 percent
market share -- equal to 1991.
	NEC repeated as No. 4 in the mainframe market, with $1.4 billion in
revenues and a market share of 6.3 percent, up from 5.5 percent in 1991.
	Two U.S. firms, Unisys and Amdahl Corp., tied for fifth, with
revenues of $1.3 billion and market shares of 5.8 percent. Unisys had 4.
4 percent of the market in 1991 and Amdahl 4.2 percent.
	Dataquest, a market research and consulting firm specializing in the
high-technology industries, is based in San Jose, Calif., and is a unit
of The Dun & Bradstreet Corp.

    I heard today that Akers has resigned his position at IBM.  I also hear
    the dividend was cut $2.16.  Anyone else heard this or have any comments
    as to what it will mean for IBM stock?

	Re. .49

	If the news is correct, IBM should go up IMO. 

	The dividend cut of $2.16 is less than the expected 50%. Besides,
	the dividend cut has already been accounted for in the stock price. 

	Akers' departure can only help the stock. 

    Yes, IBM chair Akers & CFO Metz have resigned. Outside director Burke
    (who used to the chairman of J & J during the tainted Tylanol crises)
    has been charged with finding Aker's succesor. IBM shot up 3 &
    something to 52+ after the opening. 

    Actually, I made a mistake in .49.  The dividend was cut TO 2.16 so it
    was more than half.

    IBM - Akers moves to speed split of IBM units
            {The Wall Street Journal, 8-Feb-93, p. B1}
    Mr. Akers recently told IBM's top managers he has hired Morgan Stanley
    & Co, and the Boston Consulting Group to help IBM in breaking itself
    up.  He singled out the big PC and disk-drive units as the first
    candidates for changes, which could involve outside investors or
    special new securities.  A key issues for Morgan Stanley and Boston
    Consulting Group will be the federal regulations that require
    subsidiaries to have three years of audited results before any public
    offering.  IBM didn't start keeping track of most Baby Blues until this
    year.  But it wants Morgan Stanley to figure out if there's any way to
    speed up an offering, possibly by reconstructing results from past
    years. IBM officials have said one approach they favor is to keep full
    ownership of its units but offer special stocks pegged to their
    individual results.  They point to the similar move by General Motors
    with its Hughes and Electronic Data Systems units.  The PC and
    disk-drive operations are already a bit further along in becoming
    autonomous,  IBM last year gave the PC business more control over the
    PC sales force and dubbed it an independent unit.  The disk-drive
    business, now christened "Adstar," started compiling its own financial
    results last year, before any other Baby Blue.  Both Morgan Stanley and
    Boston Consulting Group will be reporting to Paul Rizzo, a new sign of
    the powerful role the retired IBM executive is playing in dealing with
    the IBM crisis.  The groups are expected to complete preliminary work
    over the next 30 to 60 days.
    

	IBM announced a restructuring charge of 8.9 Billion for laying off
	another 35000 people. Total loss for the year (quarter?) was 8.04B
	and the dividend reduced from 54 cents to 25 cents. 

    re: .54
    
    And they are trading at 44 7/8 +2 1/2 on 1.7 million shares so far
    today...
    

A lot of this sounds like it's right out of DEC's book...
    "Week" Economy, etc... 
    
    
         NEW YORK (UPI) -- International Business Machines Corp. Tuesday
reported an $8.04 billion second-quarter loss, saying it plans to cut
35,000 more jobs in an effort to stop the hemorrhaging at the world's
largest computer company.
        The quarterly loss included a $8.9 billion restructuring charge that
exceeded analysts' estimates, which had ranged from $2 billion to $8
billion.
        IBM also said its board approved the company's second dividend cut
this year, to 25 cents a share from the current 54-cent payout.
        In January, Big Blue reduced its dividend to 54 cents a share from
the previous $1.21.
        ``The No. 1 priority is to restore the company to profitability,''
IBM Chairman Louis V. Gerstner Jr. told a news conference. ``We've made
some assumptions on what we think is going to happen. If those
assumptions are wrong, we will take additional steps to make the company
profitable.''
        Gerstner, who took over IBM April 1, has faced faltering employee
morale and massive losses.
        But initial investor reaction to Tuesday's announcement appeared
mixed.
        While Standard & Poor's Corp. lowered IBM's debt ratings and Moody's
Investors Service put the computer giant under review for a possible
downgrade, IBM stock became the most active issue on the New York Stock
Exchange in late afternoon trading, up $2.50 to $44.875 a share.
        Excluding the $8.9 billion restructuring charge, IBM posted a net
loss of $40 million, compared to earnings of $734 million, $1.29 a
share, in second-quarter 1992.
        The $40 million loss before extraordinary items proved better than
analysts had expected.
        The $8.9 billion charge included $6 billion for work-force reductions
and $2.9 billion to reduce capacity, office space and related expenses.
        Revenues for the quarter declined more than 4 percent, to $15.5
billion compared with $16.2 billion in the year-ago quarter.
        Gerstner said although the restructuring actions will affect all
parts of the company worldwide, the work-force reductions will be more
heavily concentrated outside the United States.
        IBM has been reducing its work force since 1986, trimming its payroll
by more than 40,000 employees in 1992 alone.
        However, Big Blue has seen very few U.S. layoffs. Instead, most of
the domestic streamlining has come from attrition, early retirement or
buyouts.
        Still, the computer maker has indicated future staff reductions could
require layoffs.
        Gerstner said that since 1993 began, some 50,000 employees have left
or made commitments to leave the company this year.
        He said the actions announced Tuesday will result in a further 35,000
job cuts.
        Gerstner also did not rule out future employment reductions.
        But he added, ``The employees have borne an unbelievable burden.
Morale in some parts of the company is not strong. I'm worried about
that. We want to put an end to the Chinese water torture they've been
going through quarter after quarter, year after year.''
        The executive could not offer specifics on when the ``torture'' would
end, but said he hoped steps the company outlined Tuesday proved
correct.
        However, he admitted, ``There are no certainties in this.''
        IBM, a pioneer in the mainframe-computer business, steadily lost
market share in recent years as other companies dove into the popular
personal-computer market.
        ``There is still a lot of mainframe horsepower being sold in the
world, but they're now more productive,'' Gerstner said. ``We are
selling less units for the same customer output.''
        However, the CEO declined to comment on IBM's technological
direction.
        ``The last thing IBM needs is a vision,'' he said. ``I don't believe
there is a single technological strategy for IBM. I don't want to choose
between being a service or product company.''
        Gerstner said business conditions generally proved soft throughout
the world in the second quarter.
        IBM's overall hardware sales declined nearly 13 percent, while 
revenues from all other sources increased more than 5 percent.
        ``We are not satisfied with IBM's financial performance,'' Gerstner
said. ``However, our second-quarter results show some areas of
improvement over the first quarter.''
        He said IBM personal computers and workstation computers did well in
the market, while the company's services business showed double-digit
growth in the quarter.
        ``Our overall gross margin remained stable for the third consecutive
quarter. It's far too early to declare victory on that front, but it's
an encouraging sign,'' Gerstner said.
        Because of the ongoing growth of IBM's services businesses, some
limited hiring will occur. As a result, IBM said it expects its
worldwide employee population to be in the range of 255,000 at the end
of this year but then drop to only 225,000 by the close of 1994.
        For the first half, IBM reported a loss of $8.32 billion in contrast
to earnings of $3.28 billion, or $5.74 a share, a year earlier. The
results for the first six months last year included a $1.9 billion
benefit from a change in accounting principle.
        Six-month revenues slipped more than 5 percent to $28.58 billion from
$30.26 billion in the year-ago period.
        S&P said it lowered its senior debt ratings on IBM, IBM Credit Corp.,
IBM International Finance N.V. and IBM Japan Ltd. to single-A from
double-A minus.
        The rating agency also lowered IBM's preferred stock rating and its
commercial paper ratings.
        About $21 billion of rated debt and preferred stock was affected by
S&P's move.
        Moody's placed IBM's short and long-term debt and preferred stock
ratings under review for a possible downgrade. The agency also placed
IBM's financial subsidiaries under review.
        Approximately $27 billion of IBM's debt and securities were affected
by the action.
Article is xrefed to clari.tw.computers:3774
Article is xrefed to clari.biz.labor:5511
Article is xrefed to clari.biz.economy:10662
Article is xrefed to clari.biz.urgent:1888
 
End article 7849 action: 

    
    
    It looks like Big Blue is on the road to recovery.  Its been going up
    steadily for the past 3 weeks to now 55 1/4 +2 1/4 today.
    Its now at a 6 month HIGH!!!
    
    Are analysts expecting the worst is over and IBM PC business is taking
    over for the weakness in its mainframe business ?
    
    I have heard many analysts have changes there opinion of IBM to a
    strong BUY.

    IBM: 58 1/4 +6 on good earnings.  One share will buy more than
    three of DEC now.  I have to meet with somebody from IBM tomorrow;
    anybody got a paper bag I can use to put over my head?  ;-) kb

    It's interesting to contrast the differing views on the dividend
    between .33 and .59; both entered at the same price!

    Yeah, that's the difference that causes an Up- or Downtrend. 
    Perception moves the market.
    
    Now for the good news: There's a lot of room for improvement in the 
    market's perception of DEC stock :-)
    
    Klaus

    IBM will outperform the market over the next year, and will post a
    $0.50/share dividend increase in a couple quarters.
    
    			"Predictions 'R' Us"
    
    				Rich

    IBM will trade at $30 by 12/31/94 (but I'm too much of a chicken to
    short it!)

    It's been higher yet...
    
    Symbol        : IBM         Exchange    : New York Stock Exchange
    Description   : INTL BUSINESS MACHINES
    Current Price : 63.875      Volume      : 2642800
    $ Change      : 0.750       % Change    : 1.16    
    52 Week High  : 64.000      52 Week Low : 40.625

    Does anybody know what IBM's earnings looked like ? They are supposed
    to announce today.

    I believe they came out with earnings of $1.14 per share while the
    street was expecting about 50 or 60 cents a share. The stock is up $5
    or so.
    
    "Imagine" if we come out with pleasant surprise next week :-)
    
    /P.B.
    

    
    > "Imagine" if we come out with pleasant surprise next week :-)
    
    This would be a wonderful selling opportunity.
    
    > $1.14 per share
    
    Great job IBM.
    
    Dennis
    

>    Great job IBM.
    
While we are here cheering for IBM's success. I wonder what kind excuse we can 
use this time for our failure of turning this company around. IBM is about 5-6 
times the size of DEC and they have done it in a much shorter period of time. 

Ooops, I forgot this is the "investing" notes file.  Sorry!   :-)

    
    re: .-1
    
    I understand what you're saying.
    
    I try to limit my comments in this conference to only opinions/thoughts
    related only to the stock -- not the emotionalism surrounding Digital
    (e.g., its morale problem, etc.).
    
    IBM is large and has shown it has the ability to bounce back.  I'm sure
    all of the people who bought IBM in the below $50 or less range are quite
    happy.  It would be great if symbol DEC could do just as well.
    
    Dennis
    

    
    re: .-1
    
        I've heard this scenario referred to as the "Return of the JEDI":
    
    		J(apan), E(urope), D(EC), and I(BM)
    
        a.k.a. the "days of yore"  (as in "the days of yore last good
     	raise").  Maybe it'll happen, but you might want to keep a few
    	dollars invested in some companies that benefit from downsizing,
    	just in case.
    
    /jim

In my opinion, the profitability that IBM has shown is a
short term one.

Short term profitability can/is boosted by the previous
restructuring charges. Recall that Digital showed a profit
in Q4. 

If you read the details of
the IBM earnings, you will note that key systems such
as the AS400 are decreasing in sales.

The PowerPC strategy at IBM is in sorry shape.
The PC strategy has undergone mgmt change.

Gim

    re: .73
    
    You are right about the PowerPC. I think it's in a bad position just
    like our Alpha. I don't see either Alpha or PowerPC will replace
    Intel's Pentium. 
    
    But, from what I read today, IBM's profitability is not only from cost
    cutting. It also comes from increased sales of their mainframe systems.
    So, that's from "increased revenue". As for DEC, our revenue has been
    dropping. What WS wants to see now is a turn for DEC to increase
    revenue. If we can show a profit from increased revenue (not cutting
    cost), our stock price will start rebound.
    
    Mike

    Anybody else feeling that this thing is just a bit overextended?
    Third Friday in April is late (21st); is this late enuf for
    earnings to be announced beforehand?  Just curious... KB

    
    	Yes. Sell IBM. Take the money. Say thank you.
    
    		the Greyhawk

    
    
    re .-1
    
    WHY ?  Look at HP surging over $120 share ... I think IBM can perform
    just as well, especially if they can increase revenue.
    
    I don't think *everybody* is dumb enough to be buying at this price if
    IBM's turnaround isn't for real .. its people like you who miss the
    boat.
    
    

    
    	I believe IBM is more than fairly valued at $80/share. Nearly
    all their profits still come from mainframes. And, BTW, Digital was
    at $199 before our troubles started, and I'm not buying any of our
    common either.
    
    	To each his own; but if investing in technology stocks is what
    you want, far better values exist than old line computer manufacturers.
    
    		the Greyhawk

   IBM posted sales and earnings this morning that far exceeded the 
most optimistic analyst projections.   I remember revenue was +17% year
over year, but don't remember the other specifics.

    
    re .-1
    
    And investors are being rewarded BIGtime today, which includes a nearly
    2 point leap yesterday ...
    
    Symbol        : IBM          Exchange    : New York Stock Exchange
    (NYSE)
    Description   : INTL BUSINESS MACHINES                       
    Last Traded at: 91.5000      Date/Time   : Apr 21  1:40:36
    $ Change      : 2.6250       % Change    : 2.95    
    
    Volume        : 3074500      # of Trades : 541      
    Day Low       : 89.1250      Day High    : 91.5000  
    52 Week Low   : 51.3750      52 Week High: 91.5000  
    

	Certainly wouldn't of been nice to buy close to it's 52 week
	low, especially since they still pay a dividend :-(

    > Certainly wouldn't of been nice to buy close to it's 52 week low
    
    why would it not have been nice?

    
    
    OK folks,
    
    Is IBM a BUY, SELL or HOLD at current price of 89.625, its down almost
    10% since its high of 97.875 a few weeks ago.
    
    Does aquiring LOTUS help IBM stock short term and long term ?
    
    

    Looks like it closed above a century for the first time in a dog's
    age... altho last Friday it broke 100 intraday.
    
    "dog's age" = complicated, highly technical brokerage term  ;-)

    Does anybody have the IBM earnings to report here off the net ?
    
    Thanks in advance

    IBM reports record second quarter sales and earnings.
    Earnings of $1.7B or $2.97 per share on sales of $17.5B.
    As of noon, stock is down 2.25 to 105.

	I believe the reason they are down is because they also said
	a big part of their earnings were PC's or something and that
	they don't expect to be able to match this Q's performance
	in the upcoming quarters ....

Courtesy of IBM's web site...

IBM posts record second-quarter results

July 18, 1995

IBM today announced record second-quarter 1995 earnings of $1.7 billion, or
$2.97 per common share, compared with earnings of $689 million, or $1.14 per
common share, in the second quarter of last year. Total revenues increased
14.2 percent over the same period of 1994 to $17.5 billion, also a
second-quarter record.

IBM Chairman and Chief Executive Officer Louis V. Gerstner, Jr., said: "This
was a very good quarter. Although our merger with Lotus has drawn a lot of
attention in recent weeks, we made important strategic progress in the quarter
in other areas of IBM as well. For example, we announced a number of new
server products, including a PC server that can run both mainframe and
personal computer applications. We introduced upgraded System/390, RISC
System/6000 and AS/400 models and the Power Series -- new desktop personal
computers and ThinkPads featuring the PowerPC microprocessor. We continued to
make progress in turning around the PC Company. Service revenues again grew by
more than 30 percent. Our gross profit margin strengthened and our balance
sheet remained strong. Cash balances held at first- quarter levels of $10.5
billion despite $1.4 billion of stock repurchases and $500 million in cash
restructuring costs.

"Despite everything we have accomplished, however, it's important to recognize
that maintaining our momentum will require continued progress in all areas of
the company," Mr. Gerstner said. "Our business improved each quarter last
year, which will make year-over-year financial comparisons more difficult as
we move into the second half of 1995. Also, there are a few signs that demand
may be slowing and price pressures increasing in the United States, and a
number of key European countries remain sluggish.

"We must implement our technology and marketing strategies -- quickly and
skillfully -- and we must keep meeting our cost-reduction goals. Nevertheless,
I remain pleased overall with the pace of transformation at IBM."

Revenues increased in all geographic areas in the second quarter. Revenues
from North America were $7.1 billion, an increase of 8.9 percent from the
same period of last year. Revenues from Europe/Middle East/Africa totaled $6.1
billion, up 11.5 percent year over year, while Asia-Pacific revenues were $3.6
billion, an increase of 30.9 percent. Revenues from Latin America were $742
million, up 19.7 percent from the second quarter of last year.

Currency had an approximately 7 percentage point favorable impact on the
company's revenue results in the second quarter. Excluding the effects of
currency, sales growth in North America, Latin America and Asia-Pacific ranged
from satisfactory to strong, while results in Europe were disappointing.

Hardware sales totaled $8.6 billion in the second quarter, up 12.5 percent
from the same period of 1994. Personal computer, RISC System/6000, AS/400 and
storage product revenues increased significantly compared with the second
quarter of last year. Mainframe demand remained strong, as measured in MIPS
(millions of instructions per second), although overall mainframe revenues
declined as expected from the same period of last year as a result of price
reductions.

Total software revenues were $3.1 billion, an increase of 12.7 percent over
last year's second quarter, while services revenues grew 32.6 percent to $3.0
billion. Maintenance revenues increased 4.5 percent to $1.9 billion compared
with the second quarter of 1994, while revenues from rentals and financing
grew 4.9 percent to $882 million.

The overall gross profit margin was 43.5 percent in the second quarter
compared with 39.8 percent in the year-ago period and 42.4 percent in the
first quarter of 1995.

Total expenses fell $104 million in the second quarter from the comparable
period of 1994.

The company's "core" debt -- debt in support of operations, excluding
financing -- declined $287 million from year-end 1994 through the second
quarter to a total of $2.6 billion. Debt to support IBM's worldwide credit
operations increased $1.2 billion during the same period to a total of $20.4
billion.

Net earnings for the six months ended June 30, 1995 were $3.0 billion, or
$5.09 per common share, compared with earnings of $1.0 billion, or $1.68 per
common share, in the first six months of 1994 (excluding the sale of IBM's
Federal Systems Company and the effect of accounting charges for a change in
software amortization periods recorded in the first quarter of 1994). Revenues
for the six months ended June 30, 1995 were $33.3 billion, up 15.8 percent from
the prior year's $28.7 billion.

Unaudited Financial Statements Attached:

(a) 1993 cumulative effect of Statement of Financial Accounting Standards
(SFAS) 112, "Employers' Accounting for Postemployment Benefits."


             INTERNATIONAL BUSINESS MACHINES CORPORATION
      SUPPLEMENTAL SCHEDULE - COMPARATIVE FINANCIAL RESULTS (1)
        (EXCLUDES EFFECTS OF FSC SALE AND ACCOUNTING CHARGES)
      (Unaudited; Dollars in millions except per share amounts)


                        Three Months             Six Months
                       Ended June 30           Ended June 30
                                 Percent                 Percent
                   1995    1994   Change   1995    1994   Change
                 ------- ------- ------- ------- ------- -------
Revenue:

 Hardware sales   $8,659  $7,695   12.5% $16,386 $13,963   17.4%
  Gross profit %    40.1%   33.2%           39.1%   31.8%

 Software          3,072   2,726   12.7%   5,945   5,309   12.0%
  Gross profit %    65.3%   62.5%           65.2%   62.6%

 Services          3,041   2,293   32.6%   5,486   4,128   32.9%
  Gross profit %    21.5%   19.6%           20.5%   17.6%

 Maintenance       1,877   1,796    4.5%   3,698   3,564    3.8%
  Gross profit %    53.8%   49.7%           52.2%   50.2%

 Rentals
 and financing       882     841    4.9%   1,751   1,760   -0.5%
  Gross profit %    55.7%   59.4%           55.0%   59.8%


Total revenue     17,531  15,351   14.2%  33,266  28,724   15.8%


Gross profit       7,631   6,104   25.0%  14,295  11,340   26.1%
  Gross profit %    43.5%   39.8%           43.0%   39.5%

Operating expenses:

 S,G&A             3,883   3,935   -1.3%   7,516   7,466    0.7%
  % of revenue      22.2%   25.6%           22.6%   26.0%

 R,D&E               974   1,091  -10.7%   1,887   2,192  -13.9%
  % of revenue       5.6%    7.1%            5.7%    7.6%

Operating income   2,774   1,078  157.4%   4,892   1,682  190.8%

Other income         238     479  -50.4%     484     887  -45.5%
Interest expense     188     364  -48.3%     368     777  -52.6%

Earnings before
income taxes       2,824   1,193  136.6%   5,008   1,792  179.5%
  Pre-tax margin    16.1%    7.8%           15.1%    6.2%

Provision for
income taxes       1,108     504  119.5%   2,003     768  161.0%
  Effective tax
   rate             39.2%   42.3%           40.0%   42.8%


Net earnings      $1,716    $689  149.1%  $3,005  $1,024  193.3%
  Net margin         9.8%    4.5%            9.0%    3.6%


Preferred stock
dividends and trans-
action costs           5      21              52      42

Net earnings
applicable to common
shareholders      $1,711    $668  156.2%  $2,953    $982  200.6%
                  ======  ======          ======  ======

Net earnings per
share of common
stock              $2.97   $1.14  160.5%   $5.09   $1.68  203.0%
                  ======  ======          ======  ======

Average number
of common shares
outstanding(M's)   575.4   584.0           580.3   583.1

(1) Supplemental information provided for comparative purposes:
     1994 excludes effects of FSC Sale and writedown of software


             INTERNATIONAL BUSINESS MACHINES CORPORATION
                    COMPARATIVE FINANCIAL RESULTS
      (Unaudited; Dollars in millions except per share amounts)

                        Three Months             Six Months
                       Ended June 30           Ended June 30
                                 Percent                 Percent
                   1995    1994   Change   1995    1994   Change
                 ------- ------- ------- ------- ------- -------
Revenue:

 Hardware sales   $8,659  $7,695   12.5% $16,386 $13,963   17.4%
  Gross profit %    40.1%   33.2%           39.1%   31.8%

 Software          3,072   2,726   12.7%   5,945   5,309   12.0%
  Gross profit %    65.3%   62.5%           65.2%   57.0%

 Services          3,041   2,293   32.6%   5,486   4,128   32.9%
  Gross profit %    21.5%   19.6%           20.5%   17.6%

 Maintenance       1,877   1,796    4.5%   3,698   3,564    3.8%
  Gross profit %    53.8%   49.7%           52.2%   50.2%

 Rentals
 and financing       882     841    4.9%   1,751   1,760   -0.5%
  Gross profit %    55.7%   59.4%           55.0%   59.8%


Total revenue     17,531  15,351   14.2%  33,266  28,724   15.8%

                                                                   
Gross profit       7,631   6,104   25.0%  14,295  11,044   29.4%
  Gross profit %    43.5%   39.8%           43.0%   38.4%

Operating expenses:

 S,G&A             3,883   3,935   -1.3%   7,516   7,084    6.1%
  % of revenue      22.2%   25.6%           22.6%   24.7%

 R,D&E               974   1,091  -10.7%   1,887   2,192  -13.9%
  % of revenue       5.6%    7.1%            5.7%    7.6%

Operating income   2,774   1,078  157.4%   4,892   1,768  176.6%

Other income         238     479  -50.4%     484     887  -45.5%
Interest expense     188     364  -48.3%     368     777  -52.6%

Earnings before
income taxes       2,824   1,193  136.6%   5,008   1,878  166.7%
  Pre-tax margin    16.1%    7.8%           15.1%    6.5%

Provision for
income taxes       1,108     504  119.5%   2,003     798  151.2%
  Effective tax
   rate             39.2%   42.3%           40.0%   42.5%


Net earnings      $1,716    $689  149.1%  $3,005  $1,080  178.1%
  Net margin         9.8%    4.5%            9.0%    3.8%


Preferred stock
dividends and trans-
action costs           5      21              52      42

Net earnings
applicable to common
shareholders      $1,711    $668  156.2%  $2,953  $1,038  184.4%
                  ======  ======          ======  ======

Net earnings per
share of common
stock              $2.97   $1.14  160.5%   $5.09   $1.78  186.0%
                  ======  ======          ======  ======

Average number
of common shares
outstanding(M's)   575.4   584.0           580.3   583.1

            INTERNATIONAL BUSINESS MACHINES CORPORATION
            CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                  (Unaudited; Dollars in millions)


                                       At          At
                                  June 30 December 31   Percent
                                     1995        1994    Change
                                --------- -----------   -------
Assets:

 Cash, cash equivalents,
 and marketable securities        $10,529     $10,554     -0.2%

 Receivables - net, inventories,
 and prepaid expenses              31,172      30,784      1.3%

 Plant, rental machines,
 and other property - net          16,844      16,664      1.1%

 Investments and other assets      23,056      23,089     -0.1%
                                 --------    --------

Total Assets                      $81,601     $81,091      0.6%
                                  =======     =======

Liabilities and Stockholders' Equity:

 Short-term debt                  $11,278      $9,570     17.8%
 Long-term debt                    11,749      12,548     -6.4%
                                 --------    --------
 Total debt                        23,027      22,118      4.1%

 Accounts payable, taxes,
 and accruals                      17,251      19,656    -12.2%

 Other liabilities and
 deferred income taxes             16,477      15,904      3.6%
                                 --------    --------
 Total liabilities                 56,755      57,678     -1.6%

 Stockholders' equity              24,846      23,413      6.1%
                                 --------    --------
Total Liabilities and
Stockholders' Equity              $81,601     $81,091      0.6%
                                  =======     =======

    
    
    IBM still has over 10+ billion $'s cash after merger with Lotus ... WOW!
    
    WHat a cash machine this company is!  It seems they make cash!
    
    Who will they buy next ?

    	IBM is down because you are supposed to "buy on rumor, sell
    	on news."

    
    re . -1
    
    I wouldn't consider 1/4 point down on day a 'sell on news' senereo.
    
    I expect full steam ahead for the foreseeable future ... unless ...
    
    

> I wouldn't consider 1/4 point down on day a 'sell on news' senereo.

	It was down only that much at close, but it was down over 7
	points intra-day.  It supposedly spurred the wider market
	sell-off (DJIA down 50) which continues today (DJIA down 27) ....

    
    IBM is up over 15 points the last two days ... I could get used to 
    this :)
    
    I'm glad I still own it!
    
    

	IBM announced a 2fer1 stock split today.

    It took 10 years, but IBM finally made up everything...
    (I think the previous intraday high was 176 3/4 and the previous
    high close was 174 1/2.)  It hit 177 today and with an hour to
    go is still above 175.
    
    DEC hit 199 1/2 also in August 1987... only 164 more to go
    in our recovery.
    Kratz