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>>> Does anyone think that Ingram Micro could eventually be trouble for Dell ? <<<< Doug - yes , I for one think that Dell will revisit the 40s or 50s very soon , once the current froth leaves the market. The next big leg down will hit Dell hard , as people open their eyes and see... 1) Dell basically sells a commodity for a price that is 10 to 15% higher than their competition 2) The multiple is absurd , given that growth in this sector will be difficult, due to saturation and increasing competition , and 3) The recent upgrade phenomenon is dying out , and few people (or companies) will shell out $2,000 to go from a 300 mh to a 400 mh; the speed gain is almost imperceptible, and when easy money stops flowing , Dell's orders will die off to a steady level. I see the company doing a good , solid business , but the growth story will fade out and the stock will be at half of today's price , or lower. |
