Annex Bulletin 2011-17 October 17, 2011
A partially OPEN edition
Happy Birthday, IBM! (IBM to turn 100 on June 16; what's the secret of its success?)
Apple Falls from Tree to Cloud, Then to Earth... with a Thud (Last major holdout joins race to cloud, but falls flat on first attempt)
Updated 10/17/11, 10:30PM HST
Analysis of IBM's Third Quarter Business Results
When Great Is Not Good Enough
Big Blue Outperforms in Apple So Far This Year
KILARNEY, Ireland, Oct 17, 2011 -
It is late here in Europe, but not too late to chuckle over Wall
Street's erratic behavior. IBM just had another great quarter. Yet
it wasn't good enough for speculators who had hyped up the stock to
a new all-time high ($190.53) on Friday in advance of today's
earnings release. So "disappointed" investors dumped the stock in
after-hours trading. As I write this, the IBM shares are down about
six points to about $180, after sliding four points in regular
But tonight, Wall
Street could not be bothered with facts. It had already made up its
mind to sell no matter what Big Blue did. So "buy on rumor, sell
on fact"-adage is playing itself out again tonight. In the long run,
however, IBM shares are bound to bounce back when common sense and
reason replace the speculators' fever and cooler heads prevail.
Good night and good luck!
Enjoy your week!
THE HIGHER THEY FLY, THE HARDER THEY FALL
From Apple’s earnings report:
happened so far this week to IBM and Apple can best be described as a
correction of unwarranted exuberance. Once the market reaches an
emotional equilibrium, the shares of both IT leaders are likely to start
...BEFORE RISING AGAIN
HAIKU, Maui, Oct 27 - Which is what happened about a week or so later. Check out this chart...
A little over a
week ago, writing from Galway, Ireland, I said that a demise in the
stock values of the two most successful companies in the IT business
- IBM and Apple - should be regarded as a temporary correction:
"What happened so far this week to IBM and Apple can best be
described as a correction of unwarranted exuberance."
Well, that correction
is now over. And the Big Blue and Apple shares are on the rise again,
as is the Dow.
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Annex's 33rd Birthday (May 15, 2011)
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Case Makes a Case for Innovation (Analysis of new "Startup America" program)
HP: New Broom Sweeps Clean (Apotheker fills our first prescription in board shake-up)
IBM: Another Phoenix of the IT Industry , Analysis of IBM's 4Q10 result
One Man's Pain, Another Man's Gain? (Analysis of possible impact of Steve Jobs' health on IBM, Intel, other IT companies)
Consumer Rules (Analysis of top 15 global IT leaders' stock and business performances)
IBM Hardware to Rise and Shine Again (Analysis of IBM STG business results and outlook)
BARRON's: IBM Shareholders Will Like New Year (Analysis of Barron's article on IBM stock)
HP's "Stealth CEO" Sounds Bullish in First Public Appearance (Analysis of HP's fourth quarter business results)
Silicon Valley Rodeo (Editorial on shenanigans and costly trivial pursuits)
IBM Business Up, Stock Down (Analysis of Big Blue's third quarter business results)