Jim Cramer Blog

Stocks teetered between positive and negative territory for most of the day before finally finishing in the red. On the final trading day of the quarter, the Dow ended down -17 points, while the Nasdaq and S&P fell -0.3%. Oil hit an all-time high intra-day before dropping to close -$1.22 lower at $81.66 a barrel. Gold finished the day solidly higher.
In economic news, the Commerce Department reported that consumer spending rose 0.6% in August, the fastest growth rate in two years, helped by a 0.4% rise in after-tax income adjusted for inflation and lower consumer prices. Consumer prices fell -0.1% for August, while the core CPI, which excludes food and energy costs, rose 0.1%. Wages rose 0.2%. Former Fed chief Alan Greenspan, meanwhile, said the chances that the economy will see a recession are growing, but the odds are still less than 50/50.
On the earnings front, consulting firm Accenture (NYSE: ACN - News) reported a profit of $316.8 million, or 50 cents per share, after the bell last night, beating estimates by 2 cents. Revenue grew 29% to $5.11 billion, easily surpassing the $4.89 billion consensus. The firm also upped its dividend to 42 cents a share. The stock rose 5.9%.
Contract electronics manufacturer Jabil Circuits (NYSE: JBL - News) beat earnings by a penny last night. The company reported net income of $11.7 million, or 6 cents per share, compared with a year-ago loss of -$45.6 million, or -22 cents per share. Excluding one-time items, EPS came in at 29 cents. Revenue climbed to $3.13 billion, a 6% increase. The stock fell -6.8%.
In M&A news, private equity firm Bain Capital Partners has agreed to buy ethernet inventor 3Com Corp. (Nasdaq: COMS - News) for $2.2 billion in cash. As part of the deal, Chinese networking behemoth Huawei Technologies will take a minority stake in 3Com. The acquisition price was a 44% premium to the stock's closing price on Thursday.
Shares of 3Com spin-off Palm (Nasdaq: PALM - News), meanwhile, initially climbed after the company introduced a new $99.99 smartphone last night. The model, called the Centro, is lighter, thinner, and cheaper than its previous offerings. Sprint Nextel (NYSE: S - News) will have exclusivity for the device for 90 days. Palm shares, however, finished the day down -0.8%.

Labels: 3Com Corp., ACN, COMS, Jabil Circuit, JBL, PALM, Palm Inc., S

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Accenture (NYSE:ACN - News) beat earnings late Tuesday with $0.47 EPS over an expected $0.42 EPS. ACN's PowerRating is 6.
Arrow International (NasdaqGS:ARRO - News) missed earnings Tuesday afternoon; analysts were looking for $0.36 EPS, but the company announced $0.32 EPS. ARRO's PowerRating is 6.
It was reported that Sanofi-Aventis (NYSE:SNY - News) could be eying a partnership with Bristol-Meyers Squibb (NYSE:BMY - News). SNY's PowerRating is 4, and BMY's PowerRating is 5.
Paychex (NasdaqGS:PAYX - News), Resources Connect (NasdaqGS:RECN - News) and Sonic (NasdaqGS:SONC - News) all report on Wednesday after the market closes, so watch for heightened price action and volume ahead of the bell. PAYX's PowerRating is 6, RECN's PowerRating is 4 and SONC's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: ACN, ARRO, BMY, Hot Stocks, PAYX, RECN, SNY, SONC

Bullish calls:
Cleveland-Cliffs (NYSE: CLF - News): 'Cheap, cheap, cheap, cheap, cheap! This is an iron pellet company, and there is a worldwide shortage of iron ... I believe that CLF - if it does not get the stock higher - will be purchased by another company - buy buy buy!'Vodafone (NYSE: VOD - News): 'I think the 3% yield, plus the incredible assets it has in Europe yields a buy, and I would buy the stock.'Gilead Sciences (NasdaqGS: GILD)Celgene (NasdaqGS: CELG): 'I've got the CELG at $55.'Genzyme (NasdaqGS: GENZ)Infosys Technologies (NasdaqGS: INFY): 'You know that's one of my favorite outsourcing companies! Now there are a lot of people who won't want to put money in Bangalor... I think those people are short-sighted.'Accenture (NYSE: ACN - News): ' ... you could always do ACN, ahead of next week's quarter, which I think will be good.'Six Flags (NYSE: SIX - News): 'They reported a quarter that everyone said was bad. And did the stock blink an eye? Absolutely not. I am with you. I believe the comparisons will be really easy for SIX. Pull the trigger my friend.'Sun Microsystems (NasdaqGS: SUNW): 'I think SUNW is okay. This is a new position for me. I have historically disliked SUNW... At $6 bucks, I don't know... enough hate is enough. They've got a new CEO. They've got a KKR shareholder. I think there's a lot of ways to win. $1 down, $3 up.'Indevus Pharmaceuticals (NasdaqGM: IDEV): 'I recommended IDEV... and it is still ramping... but it's a little $6 stock, so I'm not going to push it hard here. They've got a lot of compounds... I would take a shot. It's a flyer. It's a speculative name.'Apple (NasdaqGS: AAPL): 'If it's going to $100 and beyond, I don't think $93 is a bad level, but let's do it this way: Let's buy 25 shares, with the hope it comes in so we can get our 100 shares in... I think iPhone is going to be gigantic. 'Amgen (NasdaqGS: AMGN): 'I say buy it here with a minimum risk/reward. Maybe even do it in deep-in-the-money in options.'
Bearish calls:
Boston Scientific (NYSE: BSX - News): ' We pulled the trigger, and told people to sell at $18, and I am not changing my mind. I still don't like BSX, even down here at $15. Sell, sell, sell!'Baidu.com (NasdaqGM: BIDU): 'I can never trust the communist Chinese communists to allow a free-speech internet to be able to prosper... which is why I refuse to endorse BIDU. Don't buy, don't buy.'Pozen (NasdaqGM: POZN): ' Too dicey, ever since they did that migraine game... I've got the CELG at $55. That's better. I like the GILD better too. And let's not forget GENZ!Nokia (NYSE: NOK - News): 'NOK is falling apart.'Motorola (NYSE: MOT - News): 'MOT is competely and utterly just (house of pain)।'
Published by SeekingAlpha

Labels: AAPL, ACN, BIDU, BSX, CLF, IDEV, Jim Cramer, Lightning Round, Mad Money, MOT, NOK, SIX, SUNW, VOD

Game Plan for Next Week: Brocade (NasdaqGS: BRCD), Apple (NasdaqGS: AAPL), Hewlett-Packard (NYSE: HPQ - News), Phillips-Van Heusen (NYSE: PVH - News), CarMax (NYSE: KMX - News), Accenture (NYSE: ACN - News) and DSW (NYSE: DSW - News), Movado (NYSE: MOV - News)
Cramer suggested buying Brocade ahead of an analysts meeting on Thursday during which it is expected to raise its estimates. Although Cramer does not usually recommend Cisco's competitors, the stock should rise after the meeting and he predicts Cisco might buy BRCD. While he likes BRCD as a trade, the only tech stocks good for investments are AAPL and HPQ. Cramer expects strong earnings reports next week from PVH, KMX, ACN and DSW. Cramer's top stock next week is MOV which he thinks will deliver a "substantial upside surprise."
Good and Bad IPOs Photowatt, eTelecare with stock First Solar (NasdaqGM: FSLR)
Cramer discussed two companies which are going public next week, one to pay attention to and one to avoid. Concerning Photowatt, which will trade under PHWT, Cramer says "We have had way too many solar stocks come public and there's not enough demand, even with the hype that surrounds solar... Avoid it at any price." He suggested FSLR for those who want a solar stock. However, Cramer thinks eTelecare, an outsourcing company based in the Philippines "the next great, outsourcing center," might be a good stock. It is expected to trade under the symbol ETEL from between $12.50 and $14.50. Cramer would not pay more than $15 and urged, "please buy it carefully."
Freeport-McMoRan (NYSE: FCX - News)
FCX is now a "happy oligopoly" after having merged with Phelps Dodge and has cornered copper, comments Cramer, who says its a "screaming" buy. FCX is a "terrific hedge against inflation" and is in "tremendous demand." Its secondary offering was priced at 41 million shares and FCX rose $1. Cramer notes that FCX is a well-liked stock which will continue to go up. While analyst estimates are not high, Cramer predicts FCX will provide "blow away" numbers. He adds that while demand for copper has declined in the U.S., it is a sought-after mineral in China. Cramer sees this $62 stock going to $100.
Mad Mail: Altria (NYSE: MO - News), Kraft Foods (NYSE: KFT - News), Dean Foods (NYSE: DF - News)
When asked how MO holders can lessen the risk of a downside from KFT after it is spun off, Cramer suggests buying MO's "when-issued shares।" However, he added, "Kraft will be added to the S&P 500 so there's a very good chance it won't go down at all।" Cramer would stay with DF which should go up again.
Published by SeekingAlpha

Labels: AAPL, ACN, BRCD, DF, DSW, FCX, HPQ, Jim Cramer, KFT, KMX, Mad Money, MO, MOV, PVH

Outsourcing Winners: Accenture (NYSE: ACN - News), Electronic Data Systems (NYSE: EDS - News), Infosys Technologies (NasdaqGS: INFY) and Wipro (NYSE: WIT - News)
Sporting a referee's uniform, Cramer placed four of the best outsourcing consulting firms in a competition to determine which is the best investment. In the right corner were U.S. companies ACN and EDS with a combined annual revenue of $39.5 billion, and in the left corner were Indian challengers INFY and WIT with a total yearly revenue of $5.6 billion. Putting the politics of outsourcing aside, Cramer says that these companies have a "huge market" since many new businesses are in need of original strategies. On the American team, Cramer thinks that ACN is best of breed because it has a top notch business, "record utilization levels" and strong growth to 12.9% from the 6.4% in the previous quarter. On the Indian team, Cramer likes Infosys, because it has "some baked-in underpromise, overdeliver Indian-style potential," has 10,000 hires completing training, and is getting its China business moving; Cramer calls this "a recipe for better-than-expected numbers." He likes Infosys' low 12% attrition rate, which is an important metric for an outsourcing firm. Wipro's attrition rate is higher, but he would still pay attention to its earnings on Wednesday. While Cramer prefers the Indian team for their "overall prospects," his favorite two companies are Accenture for its consulting business and Infosys for its growth.
Related: Hans E. Wagner expects continued growth for Accenture.
CEO Interview: Ronald Hermance Hudson City Bancorp (NasdaqGS: HCBK)
Cramer asked Ronald Hermance how his comany is thriving in spite of negativity surrounding banking. "Quite candidly, our model sets us apart," Hermance responded. "The reason we've outlasted in most credit cycles is that we're retaining all our mortgages and not selling them to the secondary market." The result has been solid credit quality in the third quarter, and he added that HCBK has not had a net charge off in seven years. Impressed by this statement, Cramer added that Hudson City is "basically only lending to people that don't need a loan but are taking one out for a mortgage deduction." He recommnended the stock to investors who want a no-risk banking play.
Published by SeekingAlpha

Labels: ACN, EDS, HCBK, INFY, Jim Cramer, Mad Money, WITS

Abiomed Inc. (NASDAQ:ABMD - News) said it has received 510(k) clearance from the Food and Drug Administration for its new intra-aortic balloon, a technology designed to enhance blood flow to the heart and other organs. The Danvers, Mass.-based medical product company said a combination console platform to support the balloon, the iPulse, is currently under regulatory review and pending approval. Abiomed expects to begin shipping its new integrated iPulse console outside the U.S. during fourth quarter. Following FDA approval of the pre-market application supplement to the existing console, Abiomed's initial introduction of the iPulse is expected in the summer of 2007.
Accenture (NYSE:ACN - News) reported first-quarter earnings of 46 cents a share, compared with 36 cents in the year-earlier period.
American Greetings Corp. (NYSE:AM - News) third-quarter net income rose to 83 cents a share from 19 cents in the year-earlier period. Net sales fell to $512.2 million from $552 million. Analysts, on average, expected it to earn 35 cents on revenue of $516 million. For fiscal 2007, the company still expected to earn 80 cents to $1 a share. Analysts polled by Thomson First Call expect it to earn 81 cents a share for the year.
Anika Therapeutics Inc. (NASDAQ:ANIK - News) said it obtained FDA approval for its cosmetic tissue augmentation. Anika said the product is an injectable soft-tissue filler for facial wrinkles, scar remediation and lip augmentation.
Best Buy Co. (NYSE:BBY - News) was upgraded to outperform from neutral by Credit Suisse analyst Gary Balter, on the belief that investors overreacted to third-quarter results, which fell shy of expectations.
Bristol-Myers Squibb Co. (NYSE:BMY - News) said it's reached an initial agreement with the U.S. Department of Justice and the Office of the U.S. Attorney for the District of Mass. to settle several probes of its drug pricing, sales and marketing practices. In a statement, the drug company said it will pay $499 million and enter a corporate integrity agreement with the Department of Health and Human Services. The deal is not yet final and must be approved by the U.S. Department of Justice. Bristol-Myers said it's raising the reserves set aside to cover the cost of the probes by $353 million, to be recorded in the fourth quarter. The company said it expects to take a $220 million pre-tax charge in the fourth quarter. The company now expects 2006 earnings to range from 72 to 77 cents, down from a prior outlook of 97 cents to $1.02. Excluding special items, it's still expecting earnings of $1.02 to $1.07, however.
Carnival Corp. (NYSE:CCL - News) said fourth-quarter earnings rose to $416 million, or 51 cents a share, from $336 million, or 41 cents a share, a year earlier. Revenue increased 9.2% to $2.81 billion from last year's $2.57 billion, helped by 5.5% growth in cruise capacity and a 2.3% rise in net revenue yields. Analysts surveyed by Thomson First Call had been expecting earnings of 47 cents a share and revenue of $2.79 billion, on average. Looking ahead, the Miami cruise operator said it expects first-quarter earnings of 33 to 35 cents a share, below analyst forecasts of 36 cents a share. Revenue yields are projected to be flat to up slightly, while net cruise costs are expected to rise between 2% and 3%.
Chubb Corp. (NYSE:CB - News) said it'll pay $17 million as part of a settlement with the attorneys general of New York, Connecticut and Illinois, resolving all issues arising out of investigations of property-casualty insurance bid rigging. Chubb has agreed to contribute $15 million to a settlement fund set up for customers and make a $2 million payment for costs of the investigation. Chubb said it will discontinue paying contingent commissions on all U.S. insurance lines beginning in 2007, replacing them with a supplemental compensation program.
Coastal Financial (NASDAQ:CFCP - News) shares surged after BB&T Corp. (NYSE:BBT - News) said it has agreed to buy the company in a deal valued at $394.6 million. Winston-Salem, N.C.-based BB&T said it will pay 0.385 shares for each Coastal Financial share, equal to $17.04 a share based on BB&T's closing price Wednesday. The deal is expected to close in the second quarter.
ConAgra Foods Inc. (NYSE:CAG - News) second-quarter profit rose to 43 cents a share from 29 cents in the year-earlier period. Excluding profit from discontinued operations, earnings came to 40 cents a share. Analysts' average estimate stood at 33 cents, according to Thomson First Call. Sales rose 2.9% to $3.09 billion, ahead of analysts' view for $3.02 billion. The Omaha, Neb., packaged-food company raised its full-year outlook, excluding items, to a range of $1.28 to $1.33 a share, up from a prior target of $1.15 to $1.20. Analysts' estimate stands at $1.25 a share.
Delta Air Lines Inc.'s (Other OTC:DALRQ.PK - News) official creditors' committee said it supported the carrier's decision to file its proposed reorganization plan, but said the committee "will continue to consider potential alternatives in order to maximize the ultimate recoveries for the unsecured creditors in the Delta bankruptcy."
Finish Line Inc. (NASDAQ:FINL - News) said it swung to a third-quarter net loss of 6 cents a share from net income of 2 cents a share in the year-earlier period.
General Mills (NYSE:GIS - News) second-quarter earnings rose $1.08 a share from 97 cents in the year-earlier period. Revenue increased to $3.47 billion from $3.29 billion, with unit volume growing 3%. Analysts surveyed by Thomson First Call had been expecting earnings of $1.03 a share and revenue of $3.42 billion, on average. Looking ahead, the Minneapolis packaged foods company raised its fiscal 2007 earnings forecast to $3.09 to $3.13 a share from $3.03 to $3.08 a share.
Herman Miller Inc. (NASDAQ:MLHR - News) reported second-quarter earnings of 56 cents a share, compared with 40 cents in the year-earlier period, on the back of record-high orders.
Horizon Health (NASDAQ:HORC - News) shares rose after Psychiatric Solutions said it'll pay $20 a share in cash to buy the Lewisville, Texas owner of behavioral health facilities, a 24% premium over its $16.13 closing price on Wednesday. Psychiatric Solutions, (NASDAQ:PSYS - News)a Franklin, Tenn. operator of 74 owned or leased psychiatric facilities, expects the purchase to add 17 to 20 cents a share to its net income.
LifePoint Hospitals (NASDAQ:LPNT - News) was upgraded to buy from hold at Stifel Nicolaus, which cited valuation and comfort with the company's bad debt levels.
National HealthCare Corp. (AMEX:NHC - News) and National Health Realty Inc. (AMEX:NHR - News) have agreed on a merger, the companies said. Terms call for each outstanding National Health Realty common share to be converted into one share of National HealthCare Series A convertible preferred stock plus $9 in cash, and National Health Realty shareholders will receive a special dividend for the period from Jan. 1 until the deal closes, which is expected to happen in the second quarter of 2007. Each preferred share will entitle the holder to annual preferred dividends of 80 cents a share and will have a liquidation preference of $15.75. Murfreesboro, Tenn.-based National HealthCare spun off National Health Realty as a real-estate investment trust in 1997.
Nike Inc. (NYSE:NKE - News) fiscal second-quarter profit rose to $1.28 a share from $1.14 in the year-earlier period.
Paychex Inc. (NASDAQ:PAYX - News) reported second-quarter earnings of 35 cents a share, compared with 30 cents in the year-earlier period, on the back of strong revenue from its human-resource-services segment.
Pointer Telocation Ltd. (NASDAQ:PNTR - News) lifted its estimate of 2006 operating profit to a range of $4.8 million to $5.2 million from a previous estimate of $3.5 million. Revenue should range $41.3 million to $42.1 million compared with a previous estimate of $40 million, Pointer said in a statement. The company also estimated 2007 operating profit at $4.5 million to $5.6 million on revenue of $46 million to $47.5 million. The company said it expects the increases as it acquires companies in areas it serves, expands to new territories, and broadens its service offerings in each territory. The estimates exclude the impact of potential acquisitions, "although we believe such transactions will materialize," Pointer Chief Executive Danny Stern said in the statement.
Praecis Pharmaceuticals (NASDAQ:PRCS - News) shares rocketed up after GlaxoSmithKline said it's agreed to buy the company $54.8 million, or $5 a share in cash.
Raytheon Co. (NYSE:RTN - News)confirmed it's agreed to sell its aircraft-making unit to Goldman Sachs Capital Partners (NYSE:GS - News) and Onex Partners for $3.3 billion. It plans to buy back $750 million in stock and retire $1 billion in debt. It expects earnings from continuing operations of $2.35 to $2.45 a share in 2006 on sales between $20 billion and $20.5 billion, and $2.75 to $2.90 a share on revenue between $21.3 billion and $21.8 billion in 2007. It previously forecast 2006 earnings from continuing operations between $2.70 and $2.80 on sales between $23.1 billion to $23.6 billion, and earnings of $2.95 to $3.05 a share from continuing operations on revenue of $24.6 billion to $25.1 billion in 2007.
Repros Therapeutics Inc. (NASDAQ:RPRX - News) said that interim results of a U.S. phase 2 study of Proellex, an oral drug being developed to relieve symptoms of uterine fibroids, suggest that treatment with Proellex results in a statistically highly significant improvement in multiple symptoms. The company has closed enrollment in the trial at 128 patients.
Rite Aid Corp. (NYSE:RAD - News) reported third-quarter net income of $1.1 million, but posted a loss of 1 cent on a per share basis, after paying out a preferred stock dividend. Revenue for the three months ended Dec. 2 rose to $4.32 billion from $4.15 billion. Analysts, on average, expected it to lose 2 cents a share on revenue of $4.28 billion, according to Thomson First Call. Same-store sales, or sales at stores open at least one year rose 3.4% during the third quarter, consisting of a 4.3% increase in pharmacy same-store sales and a 1.9% increase in front-end same-store sales. The number of prescriptions filled in comparable drugstores increased 2.3%. Prescription sales accounted for 64.3% of total sales, and third party prescription sales represented 95.5% of pharmacy sales. Rite Aid backed its fiscal 2007 forecast. Sales are expected to be between $17.4 billion and $17.65 billion, with same-store sales expected to improve 2% to 4%. It expects to post between a net loss of 7 cents a share to net income 2 cents.
Siemens AG's (NYSE:SI - News) Medical Solutions unit said it will begin clinical trials under an investigational new-drug application submitted to the Food and Drug Administration for an imaging biomarker that could potentially identify Alzheimer's disease prior to the onset of noticeable symptoms.
Sky Financial Group Inc. shares surged after the Bowling Green, Ohio-based company and Huntington Bancshares Inc. (NASDAQ:HBAN - News) late Wednesday agreed to a merger valued at $3.6 billion
SkyWest Inc. (NASDAQ:SKYW - News) said Midwest Airlines had chosen SkyWest Airlines to fly up to 25 regional jets. The first 15 aircraft are scheduled for delivery in April 2007 and will come from SkyWest's current CRJ200 fleet. SkyWest, based in St. George, Utah, flies connecting routes for United Airlines and Delta Air Lines .
Smith & Nephew (NYSE:SNN - News) shares rose in London after a report suggested that the private-equity group that has just acquired Biomet (NASDAQ:BMET - News) might have its sights set on Smith & Nephew as well.
Tower Semiconductor, (NASDAQ:TSEM - News) said the board nominated Dov Moran chairman. Moran is co-founder and was chairman and chief executive of M-systems Ltd., the flash-memory developer that was recently acquired by SanDisk. (NASDAQ:SNDK - News)Moran succeeds Udi Hillman, who continues as a director of Tower.
-MarketWatch

Labels: ABMD, ACN, ANIK, BBY, BMET, BMY, CAG, CCL, CFCP, FINL, GIS, GS, HORC, LPNT, MLHR, NKE, PAYX, PNTR, PSYS, RAD

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Accenture (NYSE:ACN - News) beat earnings Wednesday afternoon, announcing $0.46 EPS over an expected $0.42 EPS. ACN's PowerRating is 6.
Cognos (NASDAQ:COGN - News) beat earnings after the close Wednesday with $0.48 EPS over an expected $0.43 EPS. COGN's PowerRating is 6.
Finish Line (NASDAQ:FINL - News) beat earnings on Wednesday afternoon; analysts were expecting -$0.08 EPS, but FINL came out with -$0.06 EPS. FINL's PowerRating is 6.
Nike (NYSE:NKE - News) barely beat earnings this afternoon, announcing $1.15 EPS over a consensus of $1.13 EPS. NKE's PowerRating is 6.
Paychex (NASDAQ:PAYX - News) also barely beat with $0.35 EPS over an expected $0.34 EPS. PAYX's PowerRating is 5.
General Mills (NYSE:GIS - News) reports earnings on Thursday before the bell; look for $1.03 EPS. GIS's PowerRating is 5.
Rite Aid (NYSE:RAD - News) reports quarterly earnings Thursday morning before the bell, with analysts expecting -$0.01 EPS. RAD's PowerRating is 8.
PowerRatings are courtesy of PowerRatings.net

Labels: ACN, COGN, FINL, GIS, NKE, PAYX, RAD

IBM beat out rival Northrop Grumman Corp. (NOC.N: Quote, Profile, Research) to win an $863 million, seven-year contract to perform information technology work for the state of Texas, state officials said on Tuesday. The pact calls for International Business Machines Corp. (IBM.N: Quote, Profile, Research) to manage data centers for more than two dozen state agencies, consolidating their operations through a project that the state estimates will save it $159 million over the life of the contract. IBM, the world's largest computer services company, will handle the work with three subcontractors: Pitney Bowes Inc. (PBI.N: Quote, Profile, Research), Unisys Corp. (UIS.N: Quote, Profile, Research) and Xerox Corp. (XRX.N: Quote, Profile, Research). Accenture Ltd. (ACN.N: Quote, Profile, Research) and Affiliated Computer Services Inc. (ACS.N: Quote, Profile, Research) were on the bidding team led by Northrop, the No. 3 U.S. defense contractor, which is looking to diversify away from traditional military hardware and boost revenue by performing computer services for government agencies. Larry Olson, chief technology officer for the state of Texas, said the selection of the IBM group was based on more than pricing. Panels of state officials met with managers from the rival bidding groups as part of an extensive bidding process that began in September 2005. "The evaluation was pretty close in a lot of different areas," Olson said in an interview. "I think one of the key areas (that made the difference) was the team that IBM put in place. We think it was a very strong team. It really clicked. They understood what we were asking for. They got it." The pact, which goes into effect immediately, expands the scope of a decade-old outsourcing contract between Northrop and the state of Texas. The Northrop pact expires next August.
Source: Reuters.com

Labels: ACN, ACS, IBM, Northrop Grumman, PBI, Texas, UIS