Hi Meathead, re:<<This was management's belief at the beginning of the year.
The climate in the stock market was much different. In light of where the market
has gone over the last several weeks and what has happened to everyone, I don't
believe they are too surprised at how their stock has reacted.
Do you believe that management really thought if FEB that
if they were a little light at the end of the year, their
fwd PE would be 22, PEG less than 1, and a mkt cap nearing
yahoo's?
I don't. Nor did I at the time.>>
How a company's management team "manages" Wall Street was no different in February than it is now. If there is any difference, it is how sensitive the markets are today vs. February. In February, if you missed the numbers you where "shot with a rifle", today you are "shot with a cannon".
The point is, in February Dell and his management team did a lousy job in managing the Street, and today they repeated this level of performance. Dell and his team are very senior level managers, and mature enough to make major decisions in managing a 30 billion dollar company. Yet, they performed as juveniles in managing the Street's expectations. The facts speak for themselves.
I should note that Michael Dell is using the company as a "bank account" by making his quarterly "planned" sales of stock. In times like this, IMO, he should be buying stock in order to demonstrate his support for the company, as well demonstrating his confidence in the future of the company and the stock.
I should also note, there is no such thing as being "...a little light..." with the numbers. On Wall Street, you either meet, or beat, the numbers. It's that simple.
JMO
Stock Bull
PS: One passing thought on my part. How would you compare John Chambers' management of Cisco and the Street as compared to Michael Dell's management of Dell and the Street? |
