frank...in the business of making money...
in the past stocks paid higher divs then bonds, although many nouveau 401k type investors may think this concept absurd. it was fine to buy a stock that had minimal price appreciation, and benefit from the dividend. today few stocks pay any dividend, and those that do, are token dividends less then money market rates. so why buy stock...one reason only for appreciation. many think it is not the responsibility of a ceo to be concerned of day to day price of stock. but daily price eventually establishes a trend...and if the trend is flat to down, then the ceo is not meeting his responsibility to the shareholder. it is a dichotomy when a stock has stellar growth and earnings and underperforms its market peers, or less then peers....the market tells the shareholder quite a bit...it never lies...the reality is in the price set for the stock. the perception of over value prevents a stock from upward trend, regardless of pe....under value will be bid up. the value has nothing to do with past or present earnings...it is solely based on the "perception" of future growth of the company....in dell's case it is obvious that at the moment the market could care less about global dominance of a white box assembler....far from true...but very real...just look at six month stock performance....frank, pr, spin, dog and pony shows, earnings guidance, all a part of the game...in this instance "mikey" must conform...direct from dell great for dell, the company...but he has to once again convince the equity markets about dell the stock...strong corporate growth does not equate to stock appreciation in this illogical market..and well aware of the market sentiment, give them want they want..maybe we will see it this week...it wasn't indicated today on cnbc interview...hang in there...don't shoot anybody that i wouldn't shoot...cheese steaks always sooth...ed a. |
