College or Pro?? :) Anyway, regarding DELL, and other computer stocks for that matter, I agree that they look very strong. Even though the market was down early in the day, GATE and DELL traded near yesterday's close, and CPQ was up. Since market fundamentals, as you have pointed out, remain strong, I think we will not see a 5% correction the rest of the year. Since many of the computer box makers, along with Intel report earnings in January (???), if there are to be any warnings against poor earnings, we would see them starting soon. I would really be surprised if any come (for this sector anyway).
Another thing that has not been discussed lately is margins/earnings. You see, usually, in order to gain attention going into the Christmas shopping season, there are massive (usually 40% or so) price cuts on most machines. This obviously adversely affects earnings. However, due to chip shortages (which GATE & DELL seem to be dealing w/ especially well), there have been no price cuts. This means that margins are going to remain high. Has this been factored into earnings estimates or the "whisper estimates," and therefore the stock price?
Anyway, have a nice day!
Brian |
