>>(1) If I understand you correctly, Dell should be fearful of CPQ's dominance of the fast growing (in marketshare, but not profits!) sub-1000 market. I would ask you to compare the stock price, financial results, and company commentaries from the period mid-summer 1997 until April 1998 of CPQ and Dell. Which company has performed better during this (so-called) sub-1000 boom? Which company is slated to perform better over the next couple of quarters?
Never stated this nor did I imply it. Was just answering someone's question as to whether Compaq made a profit with their sub-$1000 computers. Don't place or blame your "fears" on me. Furthermore, you seem to have a NOW mentality. Only time will tell if DELL is able to sustain its growth for years to come. You were probably bragging ten years ago how GREAT Apple is/was.
>>(2) To mention that CPQ has 27.5 overall margins in the same paragraph with the discussion of sub-1000 seems irrelevant. That margin is clearly being driven by the upper end of the market (servers, workstations, high end PC's). Low end (sub 1000) PC's are clearly a big drag on this number...
This point is not irrelevant. Given the lack of public data as to the margins of the sub-$1000 computers, I am left only to the recite the 27.5% overall margins. Was this offset by servers, workstations? Of course...I clearly implied this in my previous responses. The point is however, COmpaq still is doing great business even while selling these cheap computers.
>>(3) Am still waiting for any adaquate (bearish) response to MD's comments last week that he sees (A) massive growth opportunities going forward (B) business STRONG in all segments (C) Dell continues to sell units at a multiple of the industry growth rate (ie., a multiple of 13-18%) (D) Dell has seen little or no impact from the aggressive price cutting of others...
I'm waiting too. History has shown that all great "entities" eventually stumble. When will DELL falter? Will it be able to adapt to the market? More importantly, will you see it before others. Given the Bullishness of this thread...you won't see the "writing on the wall" here.
>>After the flip-flop CPQ pulled this last quarter ("everything's fine", and then 2 weeks later, "flat earnings"), how can you possibly criticize Dell Bulls for their faith in Dell's management?
Don't quite remember criticizing DELL management. I'm sure I must have if you say so. Odd though given that I believe DELL has great management.
I'm tired of wasting my time defending myself for things I neither said nor implied. It has become obvious that anyone who is not a DELL bull here is viewed with skepticism and branded as a DELL bear. All "fears" are automatically assumed to have been implied. John Rosser, I don't know what posts you have been reading because they certaintly haven't been mine. It's easy on this thread to look smart and be popular. Just say "Buy DELL because its going to go up." |
