Edamo- This market is a boom and a bubble...Likewise, it is not so simple as to say Dell's (stock's) problems are due primarily to image (PR)..For example, take out the Taiwanese earthquake (surely, you would agree, this was a highly unusual and unlikely event....over which Dell had little control)...and Dell probably would have exceeded last quarter (.22 vs .18)..and Dell's stock would probably be in the low 50's now (in which we would have had a gain of over 40% p.a...which would have been fair..given Dell's core rate of growth is slowing,,,and there would be a lot less sniping on the thread)...and the emphasis on Dell's PR "problem" would have been a lot less here....Remember, even Niles, in mid-October, said the earthquake was a shame, because Dell was having a terrific quarter.....
I will grant you: Dell has transitioned now from a go-go to a value tech play (part of the explanation of this year molasses...also, the large float has contributed)........Sun will have to do this as well- transition....(its PE is ridiculous)..it will hurt for Sun stockholders too when this (2000?) occurs.....The "PR" effect last months, not years...(Unless Sun can somehow figure out a way to grow earnings MUCH QUICKER than the current 25-30%...)
Things are often more complicated then a simple explanation...If you want a simple explanation (to why a stock is down)...look at TYCO International....and watch it go up once that explanation has disapated...probably in 2-3 mos... |
