Some thoughts about IBM (IBM) now that we are pretty much a full trading day removed from the earnings release.
First, IBM is no longer as relevant as it one was for the overall market or for the technology sector. IBM's heyday was the 1960s and 1970s. IBM was then replaced by Microsoft (MSFT) in the 1980s and 1990s. Now, MSFT has ceded its technological leadership to Apple (AAPL). Someday some other company will supplant AAPL. We may be years off from that happening.
Second, the revenue for IBM miss was not a miss at all. It was a failure on the part of analysts to properly factor in the impact of foreign exchange on their revenue estimates. Either the analysts are lazy or incompetent. The excuse that they do not have enough revenue data and geographic breakdowns for IBM sales is a “dog ate my homework” defense. It is not acceptable to me.
Third, IBM, the largest component in the Dow Jones Industrials (DJIA), a price weighted index, just proves how antiquated and out of touch with the investing public that the DJIA is.
At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC was long AAPL stock and calls --- although positions can change at any time.
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Posted By Scott Rothbort at July 20, 2010
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