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IBM Issues First Earnings Warning in Over a Decade!

A

AGodspeed

Diamond Member
http://www.eetimes.com/sys/news/OEG20020408S0047

International Business Machines Corp. stunned Wall Street on Monday (April 8) by warning of a massive first-quarter revenue and earnings shortfall, which it blamed on technology spending cutbacks by corporate customers, causing a sharp drop in its stock.

The warning ? the first in more than a decade for Armonk, N.Y.-based IBM ? quickly sent waves of selling in equity markets around the world as the U.K. and European stock exchanges fell sharply.
 
IBM's stock dropped $10.00/share today, ouch!

My shares in AMD lost $1.00/share on the news, luckily by the end of the trading day, they had recovered. It's funny, I own AMD shares and have never bought any of their products, hah. Strictly Intel for me.
 


<< IBM's stock dropped $10.00/share today, ouch!

My shares in AMD lost $1.00/share on the news, luckily by the end of the trading day, they had recovered. It's funny, I own AMD shares and have never bought any of their products, hah. Strictly Intel for me. >>

I hope you have Intel stock too. It's always best to invest in the most companies in a certain industry as possible, that way you're more likely to earn some money instead of going the potentially risky route of betting on one or two companies in a given industry.

I have shares in both AMD and Intel, direct competitors in the PC and mobile markets. I also own Sun and IBM stock, both direct competitors in the Unix market. I own Compaq, HP, and Dell stock as well (all direct competitors in the PC/mobile OEM market) as well as EMC (which is not only a direct competitor with IBM in the storage market, but Compaq and Hitachi as well. I'll have to get Hitachi stock soon 🙂). I own Cisco stock now too, but have not invested in Juniper Networks for reasons I choose not to disclose. 😉
 
"I have shares in both AMD and Intel, direct competitors in the PC and mobile markets. I also own Sun and IBM stock, both direct competitors in the Unix market. I own Compaq, HP, and Dell stock as well (all direct competitors in the PC/mobile OEM market) as well as EMC (which is not only a direct competitor with IBM in the storage market, but Compaq and Hitachi as well. I'll have to get Hitachi stock soon ). I own Cisco stock now too, but have not invested in Juniper Networks for reasons I choose not to disclose."


OMG, I'm sorry. A stock portfolio of semi's and networking and storage..... Ouch!!! Want to add some tobacco, defense, drug stock picks to the pile?
 


<< "I have shares in both AMD and Intel, direct competitors in the PC and mobile markets. I also own Sun and IBM stock, both direct competitors in the Unix market. I own Compaq, HP, and Dell stock as well (all direct competitors in the PC/mobile OEM market) as well as EMC (which is not only a direct competitor with IBM in the storage market, but Compaq and Hitachi as well. I'll have to get Hitachi stock soon ). I own Cisco stock now too, but have not invested in Juniper Networks for reasons I choose not to disclose."


OMG, I'm sorry. A stock portfolio of semi's and networking and storage..... Ouch!!! Want to add some tobacco, defense, drug stock picks to the pile? >>

Lol, good thing I made about 90% of these buys last September/October. 🙂

Either way though, I bought these stocks thinking long-term investement. I could care less if all of my stocks fall to $10 tomorrow, as long as they appreciate well for 20+ years...
 
Is the warning going to be for a loss or just earnings are not as much as projected? If its the latter, IBM is still in the black.
 


<< Is the warning going to be for a loss or just earnings are not as much as projected? If its the latter, IBM is still in the black. >>

Haha, IBM will always be in the black. It's rediculous how much money they make. 🙂
 
I have shares in both AMD and Intel, direct competitors in the PC and mobile markets. I also own Sun and IBM stock, both direct competitors in the Unix market. I own Compaq, HP, and Dell stock as well (all direct competitors in the PC/mobile OEM market) as well as EMC (which is not only a direct competitor with IBM in the storage market, but Compaq and Hitachi as well. I'll have to get Hitachi stock soon ). I own Cisco stock now too, but have not invested in Juniper Networks for reasons I choose not to disclose.

Sometimes investing in a lot of stocks in the same market can hurt yah. If Semiconductor sales go way down intel and AMD will both be affected and you'll lose on both of them. But ofcourse if the semi market is doing well they both go back up and you'll gain it all back. I've owned Intel stock for 5 years now, although I have no bias towards AMD. I also own some shares in Siebel Systems ( check these guys out,amazing company) , Sun Microsystems, and a cyclical company called Kimberly Clark. Anyway im getting OT. IBM is still a very good company to be invested with in the long run even after this warning.
 
Haha, IBM will always be in the black. It's rediculous how much money they make.

Yeah that made around 8 billion dollars last year in a pretty tough technology market.
 
I presently have stock in only one IT company, that being AMD which I've owned stock from in varying amounts for about 3 years now.
The stock market is lovely--- profits of just under $9,000 in just over 3 years of playing in the stock market. 🙂
Which is pretty damn nice IMHO considering I originally started with $400. AMD stock has accounted for the vast majority of the income through stocks for me.

It's the typical wisdom that it's always wise to diversify, but I've never been one to own stock in more then a handful of corporations at a time and my methods have done satisfactory in the past so I'll stick with them.
The only stereotypical rule I stand by is never to put in money you can't afford to lose.
 
I believe IBM expects to make ~18 billion this year, down from expectations of ~20-21 billion.

Not too shabby really 😉
 
I believe IBM expects to make ~18 billion this year, down from expectations of ~20-21 billion.

Thats their revenues not their earnings. And thats revenue for just one 3 month period alone.

IBM made 4.36 dollars per share last year. Multiply that by 1.7 billion shares outstanding and they made 7.42 billion dollars last year.

According to this news their earnings this quarter will be down 30 cents from last quarter which is about 510 million dollars short from last years earnings. So if this is their only quarter that is going to be bad and everything else mirrors last year they'll still make 6.9 billion dollars. Lotsa money.
 
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