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Strategies & Market Trends : Tang's school of business management for serious investors

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To: Arthur Tang who wrote (8)5/25/2001 8:01:49 AM
From: Arthur Tang  Read Replies (1) of 57
 
This case history of Dell while promising, Dell is not managed by professionals is now obvious.

First, professionals do not start a price war where their own very existence will be questioned. Second, professionals do not trail price reduction with efficiency efforts(the horse has to be in front of the cart). Then, Dell did not understand Merrill Lynch owned the shorts(10 million shares that they can not buy back), putting a resistance(technical analysis) on the price of Dell stock for several years already.

This footnote is important if you do case history study. Because news of the problems at Dell is now just surfacing. However, Michael Dell can change every quickly by putting more strength in the high power high price products they sell to achieve a monopoly some where else in some segments of the market.
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