IMO, most "investors" today have more the mind set of a gambler than a true investor (long term profit). They want a fast payback, with a nice adrenaline or endorphin jolt for a "financial high".
On Tue, May 6, 2014 at 10:16 AM, John Gilmore <jwgli...@gmail.com> wrote: > I suspect that IBM has two, related problems. > > Like all companies of its sort it is expected to show significant > earnings-per-share growth from quarter to quarter. When it does not > its share price suffers, and it feels strong pressure to restore > earnings growth. > > It has addressed this problem using 1) share buybacks, which reduce > the denominator in earnings-per-share calculations, and 2) expense > cuts, which in the short term raise the earnings numerator in the same > calculations. > > If the new mainframe models that are shortly to appear raise IBM > revenues significantly the climate for significant mainframe-related > software investments within the company will probably improve, at > least in the short term, as it has in the past. > > Anything more is not very likely. Very short-term thinking is now the > norm in the financial community; and IBM's senior management is aware > that it is, among other things, a bouc émissaire available for > sacrifice/replacement if that will make important outsiders feel > better about the company. (Target's replacement of its CEO, announced > in this morning's Times, will propitiate "the analysts" in the short > term; but iit does not do much to address Target's real problems.) > > John Gilmore, Ashland, MA 01721 - USA > > ---------------------------------------------------------------------- > For IBM-MAIN subscribe / signoff / archive access instructions, > send email to lists...@listserv.ua.edu with the message: INFO IBM-MAIN > -- There is nothing more pleasant than traveling and meeting new people! Genghis Khan Maranatha! <>< John McKown ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to lists...@listserv.ua.edu with the message: INFO IBM-MAIN