Sell: IBM

1
Sell IBM

• Purchased 50 Shares _at_ 97 (10/29/99)
• Current Price 86.76
• 52 Week Range 72.73 -89.94
• P/E 16.4
• EPS 5.30

2
While large caps are outperforming the SP and
NASDAQ as a whole, IBM is trailing both of these
indexes.
3
Lack of Consistency.
Cash Flows can be telltale signs of a companies
condition, IBM lacks consistency to really gauge
where the company stands, and will stand.
4
IBM
JP Morgan
IBM is not a growth stock, nor a value stock.
Where is its place in the portfolio??
5
Industry vs. IBM
Getting beat by the industry, and to accompany
the inconsistency in financials, its high low
estimate spread is pretty big.
6
(No Transcript)
7
Industry vs. IBM
While largest by market cap, IBM ranks low in
all three growth categories.
8
Why Sell?

• Lack of organic growth potential
• Better industry options (We own MSFT)
• Increased competition in servers market, and
  technology market
• Underperforming industry benchmarks and indexes
• Outlook questionable!

9
QUESTIONS???