DELL has Spoken....Have the Wise Investors Listened..??
This morning PAIN-in the Assets Webber issued a concise overview of the DELL presentation at the PW technology conference. DELL Vice Chairman Kevin Rollins delivered a bullish presentation yesterday and outlined DELL's plans to sustain its high growth rate through "an internet -and services-focused business model that spans multiple customer, product, and geographic segments." I will post highlights later today after an afternoon meeting.
Bear Stearns also released their Summer Computer Quarterly Summary today. They are quite optimistic about PC, server, and storage growth around the world. The also do not view Y2K as a major issue for LONG TERM investors. I'll try to post highlights later.
IMO, things look pretty good for DELL BUT there is A LOT of misinformation out in the marketplace. We also seem to have quite a few confused Fund Managers -- chasing cyclicals, going after the next hot tech stock, and feeling that they can not be as patient as they used to be. Some are worried about interest rates and some get their blood pressure up over Y2K and hardware stocks. The bottom line is that there is A LOT of money on the sidelines -- waiting to be deployed. Remember some of the best performing Funds -- like Janus 20 and Janus Mercury -- think long term. They invest in great companies and ignore the noise in the marketplace. They have owned large positions in world class growth stocks like AOL, CSCO, DELL, MSFT, and Nokia for years. They still own large positions in these stocks. Compare the LONG TERM performance of these Janus Funds to the average large Growth Fund and its not even funny. Janus digs deep, understands a company and its prospects, and invests for the LONG TERM. They are the top performing Fund Family in North America for the last five years. They also are one of the top three Mutual Fund Family owners of DELL -- according to recent quarterly releases. Follow the Big Money and the Smart Money and it can reveal valuable lessons. None of my relatives have sold a share of DELL. I did sell some DELL when it was near $40 in order to reduce my margin exposure. Yet, DELL is my #2 holding and I'm sleeping very well.
I'll be patient. Stay tuned and I'll post more later....
Best Regards,
Scott |
