Today's report about employment is very bulish. Continuous economy growth together with wage hike , high productivity, no inflation (probably deflation) , people have more money to spend , and the supply of low price goods are abundant, domestic market will continue
to expand together with market in Europe , China, South America continue to expand in a fast pace. Little ripple came from S.E. Asia
recently, but will be fixed pretty soon ( I do not think CPQ sell too much in countries like Malasyia, Indonisia, VietNam, Thailand...etc)
, and the cost of components will drop further .CPQ will dominate the
whole world in computer sales, and the foundation has been paved.
Today, I see the stock of CPQ is in an accumulation mode, and INTC has
started the train today, and all high Tech stocks will follow next
month. The ET told me that Intc is heading toward the $100 _ $120
range during the Christmas season, and 98 will be even better.So will
be CPQ, Dell ...etc. The problem I see on Dell is that it did not take
a share in the fast growing consumer PC market while its high end market is continuing being attacked by companies like CPQ, IBM.
Sunw will be a big loser !!! INTC will be a big winner due to the consumer pc market expansion. This is a new market, which means additional revenues for Intc and those box makers. CPQ's revenue in 2001 may well be over 50 B !!!! Its the most prepared computer company
for the future accelerated growth. |
