Chris, Here are some of the answers, many of which you will never hear on the conference call. Unless they allow Fred Hickey to speak. <g>
1. Memory is only part of the equation. Motherboards, SRAM, and even video chips are also rising in price.
2. Dell says demand is very high for their products. But, read between the lines. Not high enough so they can keep price gouging customers for their high profit margin.
3. I have long maintained that Dell is the highest cost box producer due to their profit margins. They have to keep that profit up to keep the stock up to keep employees working for options instead of cash, which keeps the profit up. This is a small attack, but any assault on that profit margin could be deadly for this bloated stock.
4. Bill Fleckensteing had it right when he reported on Dell's lie-a-thon on the 7th. At the time they said they would know more about any impact in several weeks. Huh! Bill noted that the co. with the fastest turnaround and lowest inventory levels should know within hours. O.K., hours is my word, but weeks? No way.
5. My guess is that a few weeks from now we will see huge insider dumping of this bowwow between the 7th and the 17th. Just for financial planning purposes, of course. <g>
6. My guess is that years of accounting abuse may have caught up with Dell, at least temporarily. |
