jmac: I always compute p/e on trailing 4 quarters, which is the correct way of calculating published p/e.
For fiscal y2001(ending Jan,'01), it looks like the earnings will be in the range of .92(a 50% increase from .61 for fy2k). That is p/e of 27 at todays aftermarket low.
Right now the market is angry with Dell.
But show me a single blunder they did.
Expectations were the result of high hope drunkenness of investors. The management has taken advantage of it, but I don't see any wanten misbehaviour. The kid is still hard at work.
May be this level of business and the enterprise level business new to him. But I suspect that he is learning.
If you are afraid of further erosion, protect yourself by selling LEAPs. But if you can hangin, I think this company can give you good returns.
I am buying more October calls tomorrow. You may think I am siuicidal, I think the ball has swung far enough that I can catch the wind on the swing back, and improve my portfolio.
If I were Michael, I would have done exactly what he did. When he had hopes, he did not try insert fear in you. When he found out that he can't stop some bleeding in sales, he is telling you. He is trying to make sure 3Q profits are protected. He is trying meet his goal of 30% revenue growth by cutting price on products selectively. I think these will bear fruit. And as a LT investor with ST oppurtunities, I will keep my 70% committement to this company. |
