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Monday, January 31, 2005

Razor vs. ThinkPad

I thought it kind of funny, Lenovo paid $1.25 Billion for IBM’s entire PC and laptop ThinkPad division, where as P&G is going to pay $54 Billion for some razors from Gillette!! Let’s see: high tech vs. low tech; bleeding edge vs. cutting edge, and I guess the value for those Mach-3 blades from Gillette edged over Big Blue’s foundation technologies by over 40 times!

I know I know, the profit margin for the PC industry is thinner than the razor blades from Gillette; and on the other hand, Warren Buffet’s stock of choice from the start – Gillette, although boring in the R&D sector, cleans and grooms the men around the world daily, so I guess IBM didn't stand a chance…

One man for sure is happy about the P&G/Gillette deal; Gillette's CEO James Kilts will be smiling all the way to the bank with the $185 Millions he'll benefit from the merger. Don’t know why, I feel a little nausea after reading those numbers…

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