<<What TXN and DELL have said is very important:
There is no demand for their products. And there is no improvement in sight. Fed can't help them.>>
Yes, you are right for certain sectors such as anything pc-related, perhaps wireless also. DELL is a poor indicator of the NAZ or health of the high-tech companies because it is a has-been, so is INTC, so is MSFT. These companies operate in a space where is a glut of supply and no demand i.e., no pricing power whatsoever.
However, you are conveniently omitting other companies that came out with great earnings - AMCC, CHKP, JNPR, EMC, CMRC, SEBL, BRCM, ITWO. These companies make highly-value added products which are highly treasured, hence high margins. They would be affected if the nation slips into a recession, but the stock market is betting there will be no recession. If these companies can grow @ 100%+ when the general economy was falling off the cliff last quarter, how fast do you think they will grow if the Fed can engineer a soft-landing? |
