<<Both are neutral on the short term on DELL stock because they feel that the valuation is very high in the face of what they believe will be a difficult 2H for the industry. Whether that opinion is right or wrong remains to be seen.>>
GVTucker: Do you know how long some of these ANALysts have been neutral or had 'hold' ratings on DELL? To me they are not providing their clients with objective and valuable insight. Why do they see the world so much differently then P. Jaffray's Kumar or BBRS's Niles? It sure is interesting that so many of the analysts (from very credible firms like Goldman, Morgan Stanley, CS First Boston, SG Cowen, Prudential, etc) are not overly concerned about DELL's ability to execute in the 2nd half. They all have access to DELL management, industry data, customer info., etc... Why the difference in opinions? Hmmmm......
In regards to Paine (in the Assets) Webber, they don't seem to be consistent with some of their ratings and price targets at all. They are pounding the table on AOL with a strong buy and a price target of well over $200. Yet, they still are cautionary about DELL and worried about valuations <G>. I would contend that AOL is quite richly valued and faces more competition then ever before. DELL's valuation is 'quite reasonable' compared to AOL's....BUT....Paine Webber just views DELL like another box maker. IMO, they do not appropriately value DELL's business model or the power of its internet initiatives.
Just my views....See you in the 50s..!!
Best Regards,
Scott |
