Weekend thoughts w/e Apr 19 2008

Reading Time: 2 minutes

Currency effects
While we are heading to $4 gas (partly thanks the weak dollar), not all are victims of this trend. Think Google or IBM. Google (GOOG) and IBM reported blow out earning, while cell phone maker Nokia (NOK) reported so-so earning (or outlook) last week. One key difference is the reported currency, Google and IBM reported results in USD, while NOK reported in Euro. We all know Dollar lost a lot ground to Euro in past year, since GOOG and IBM did a lot business in Europe (and internationally), their earning and earning growth is exaggerated by the depreciation of dollar. Nokia is hit by the opposite force. A more important question to ask is: can the dollar continue to slide vs. other currencies? Personally I would not bet on GOOG or IBM if their growth is mostly from the currency effect

ICBC, Goldman Sachs, China Invest Co. and Blackstone

Business Technology

AT&T and IBM

Reading Time: < 1 minute

I found some interesting articles about AT&T and IBM. They are written by Wu Jun, a research scientist at Google. I like Wu Jun’s writing style (humorous), and his business perspective of the two companies (very good).

Here is the link to AT&T articles; and here is link to IBM series. Both are in Chinese, and there are 6 articles for each company.

One thing I felt amazing about IBM is this (quote the article):

在小华生执掌 IBM 的二十年里,IBM 的平均年增长率高达 30%,这在世界上可能是绝无仅有的,他的父亲也没有做到这一点。

Translated in English: in the 20 years when Watson Jr. was the CEO of IBM, the average anual growth rate is 20%. No other company has done that. His father Waton Sr. did not accomplish that either.