Dueling Fools
September 23, 1998
Big Blue Duel
IBM price (9/23/98): $127 3/4
You may not be familiar with International Business Machines, but odds are that IBM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IBM)") else Response.Write("(NYSE: IBM)") end if %> is a household word. Personal computers. Networking systems. Software. And while the company may have lost its luster as a technology stock bellwether years ago, it is still a major player.
This week Louis Corrigan (TMF Seymor) and David Forrest (TMF Bogey) are Dueling Fools. Louis thinks that good things are ahead for the company. David thinks that "Big Blue" is the state of heartbreak awaiting shareholders. Who is right? This week's Duel is just a click away.
And don't miss this week's Duel Flashback, where we look back at our fundamental slugfest over database specialist Oracle <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ORCL)") else Response.Write("(Nasdaq: ORCL)") end if %>.
You Get to Vote!
Once you've read the arguments and the rebuttals, it's your time to cast your vote. We'll tabulate results each week and revisit them from time to time to see whether you were right! As always, we invite you to join us in the Dueling Fools Message board to continue the duel.
[Any suggestions, comments, praise, or flames, please send them along to the Dueling Fools Team.]
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The Bull... As the saying goes, you don't get fired for buying IBM. That's a little less true today than it was in Big Blue's heyday, yet it still applies -- particularly to its stock. In an otherwise gloomy market, old dependable is still up about 21% for the year. Moreover, the stock price has tripled over the last 22 months as CEO Louis Gerstner, Jr., has convinced Wall Street that IBM's turnaround has worked and that better times lie ahead. Continue... |
The Bear... I often scratch my head and wonder why IBM isn't a core holding in the Boring Portfolio. I mean, if this isn't the biggest snoozer investment in the world, I don't know what is. All jokes aside about Big Black and Blue, this company has been an absolutely horrible investment over the last decade and from what I see, it doesn't look like IBM is going to offer awesome returns for investors anytime soon. Continue... |
Results for last week's Nike Duel
| Answer | Percentage |
| I can't make up my mind | 3% |
| TMF Ralegh's Bull argument |
31% |
| TMF Puck's Bear argument |
53% |
| They were both excellent |
11% |
| They were both lame |
2% |