View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
July 17, 1991


By CBR Staff Writer

Many views make a market as they say, and while analysts at Shearson Lehman Brothers have been talking IBM Corp’s shares up, Thomas Rooney at Donaldson Lufkin & Jenrette is just as energetically talking them down: Rooney has been telling clients to sell the shares ahead of announcement of the second quarter figures, due tomorrow, saying that he expects IBM to have an operating loss in the current quarter, and is concerned about the dividend cover – a healthy company should have its dividend covered around 2.5 times by profits, and if cover gets down below one, a company must either cut its dividend or dig into its cash reserves to maintain it; Rooney still expects the typically hectic fourth quarter to bring IBM back to $4.75 a share for the year – against $10.71 last year, but says he may have to lower his 1992 estimate of $8.50 to $8.75 a share; IBM shares shed $2.625 to $96.75.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.