GVTucker,
Hi!!
I just received this from another DELLhead friend...
RE: Kumar's job is to generate commission business through their brokers and
institutional clients. If he stayed on "strong buy" all the time, there would be
no commission business on the Dell portfolio, and Kumar would be packing.
Perhaps in some folks minds this answers a lot of questions...Yet, I can't but not recall the many conversations I've had with folks that invest...The vast majority of them are long term investors that don't find an urge to play the market...Surely I'm not taking a poll but while you are mentioning the subject:
RE: If you're going to place blame with anyone of this short term focus, blame CNBC and its day trading mentality. While there is no question that the analysts can tend to talk more about the quarter to quarter performance (after all, part of their compensation is tied to the commission volume they generate), they also for the most part have a pretty good handle on the long term possibilities. You just don't see Mark Haines talk about this too often because it isn't really all that exciting--well, for most people, kemble, not you.....:)
I find it hard not to include the common remarks many friends make concerning CNBC...And, without a doubt this unofficial "census" has overwhelmingly shown that the typical flow of conversation aids the traders...For example: One friend recently told me that the next time Joe Pisani ever talks long term it will be the first time... :o)
I can't help but not agree with your assumptions GV...What will continue to frustrate me is the conscious efforts many investors make to research companies and then find them being trashed by the negativity of the media...MB when she stood on the floor of the NYSE to start the opening bell would commonly be handed a note from anyone and just read it...She really had NO idea who was handing her these...Amazingly we all could find laughable sentences that she could have read unknowingly...Once again I feel it is not the hype that wins here in the long term...But, it has drastically aided the traders that you read about who play these remarks daily...It is with this possible minimal knowledge that I see that makes me wonder what companies like DELL are doing to almost pre-empt this new market strategy...Kumar's remarks are not just another negative remark when the company is struggling to turn into these new areas...I'm certainly willing to wait for the turn...I just have a sense of frustration that others that have long endured this turn will give up and sell...You obviously know I believe that what Mary is referring to is where DELL is leading many to for a fabulous future...I don't want the others to abandon this patience and bail...IMO "Michael's Second Act" will dwarf his first act...The opportunities staring at him far exceed anyone's imagination...
Best, Kemble |
