IBM & 'no bid' contracts


Expert on blowing
Feb 12, 2003

as in 'you may not bid on any u.s. government contracts'.

strangely, their stock is seemingly unaffected by this news, & here's why:
Wall Street wasn't immediately concerned about the suspension. Last year, IBM got about 1% of its revenue from new federal contracts. David Bailey of Goldman Sachs wrote in a research report that even if the suspension lasted for a full quarter, it would likely cost IBM about two cents a share in earnings "which we believe IBM could make up in other areas."