|
There is no doubt that DELL computer is a good company that produces a good product. However, stock valuation has reached ridiculous levels (current P/E of 50), and especially so for a company in a business where there are NO BARRIERS to entry. It is essentially a commodity type item, with an excellent distribution system. I have no doubts that DELL will be around for quite some time, but I dont belive it can maintain its current growth rate given the competion which is beating down its door. I would like to hear some intelligent discussion as to why DELL can maintain its market lead, given that every other computer maker is trying to copy DELL'S model and breathing down thier necks. Price competition is fierce and margins must come down sooner than later. I believe that the company is at least 50% overvalued from a traditional point of view, and all normal types of valuation methods......all ideas and thoughts welcome...;^) |
