Why IBM's debt is worth watching
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| IBM has plenty of cash, access to credit, and global reach. But its customers aren't immune from the credit crunch, and their IBM-financed debt shows up on Big Blue's books. |
It occurs to me that there may be some Big Tech readers who didn't see my investing piece from a couple of weeks back about IBM's (IBM) financing business, and why we should watch how it performs as the global financial crisis unfolds. It didn't appear here, as it's part of an ongoing series on Fortune.com.
After the somewhat conflicting signals the tech world has given over the past few days, including a major sales warning from Intel (INTC) and a positive pre-announcement from Hewlett-Packard (HPQ), I'll be that much more interested to dig into the numbers these companies offer in their SEC filings.
Again, in case you missed it, the piece is here. (AAPL) (CSCO)
IBM has been a buying company spree for years. They can't seen to be able to generate sales from their existing customers so they buy companies with healthy balance sheets to look good Wall Street. You have to wonder why they can get away with buying so many companies and justify laying off employees who have few years shy of retirement.
The truth about IBM is that while they are reporting their great numbers…nobody is talking about how they are quietly laying off 300 to 500 employees left and right…funny how that does not seem to make the news…I guess you can have great numbers when you layoff so many people.