Ian, re:<< What the Dell bears seem to miss is the customer loyalty that Dell establishes with its business customers through the "premier page" program.>> IMO, this has nothing to do with Dell's stock performance. The major reasons for the stock being down are:
1) Missed the Analyst's growth expectations of 50+% for the past two quarters.
2) The sector rotation out of the high tech stocks.
3) The perception of inflation being on the horizon, and the Fed upping interest rates. Higher interest rates affect the high pe stocks.
4) The profit taking in the tech stocks.
5) Declining pc prices and the affect on growth, eg, revenue, margins, profits.
6) The recovery of the emerging markets, Asia and Japan. Concern is that these countries will be using more fuel, oil, commodities, etc. This will help push inflation up.
I'll stop here.
So, given the background that I described above, one can conclude that the tech sector will continue to suffer until the above issues are put to rest. At best, the continuous dropping in stock prices will stop and the basing period will begin.
Stock Bull |
