Jean, I find it funny that you are complaining about the lack of respect for DELL, MSFT and INTC among others. Do you realize the PE's MSFT and DELL are sporting?
INTC has major problems, coppermine flops, Rambus flop, no 820 chipset, crashing ASP's, Competition from AMD and its Athlon.
MSFT revenue growth and earning growth is slowing. Linux is taking market share which is going straight to the bottom line. Star Office, a competition for MS Office from Sun, can be downloaded for free and it is a very capable product. MS still has carries a healthy PE.
Dell's just in time model with very low inventory is a liability at this point. Dell has benefited greatly from its model due to ever decreasing component prices. That trend has ended for now, as fab utilization around the world is high with no relief in sight. Dell's margins will be under pressure going forward.
Re <<Can someone tell me WHY interest rates hurt the NasDaq, and especially MSFT, INTC and DELL, when they HAVE NO DEBT TO SPEAK OF, and they are SITTING ON MOUND OF CASH !!!!????!!!!!>>
You do not seem to understand the problem with rising interest rates. First high interest rate is bad for high PE stock since future earnings are worth less in todays Dollor. Also IT SLOWS DOWN THE ECONOMY by restricting money supplies. Thus there is less demand for Dell's product. Also it makes the bond market more attractive, so investors pull money out of stocks (stocks go lower) and invest it in bonds.
No stock always go up, I know DELL defied that rule for a long time but that is over now. Dell is a great company and its shareholders have benefited greatly. But it was/is priced as a great company and a bit of disappointment and there you have it.
You seem to judge a stock by where the price has been, but you need to also look at what the earnings and growth was expected to be. 35% growth is simply not good enough when the stock is priced like DELL is.
Mani |
