I don't know that we even disagree all that much Gus... It's a longshot, but if anyone is going to do it, it would be soon, especially if we have a final climactic sellof and EMC goes below 3 bucks.... As for your printer scenario, it's intriguing, but the big stumbling block is the technology as you say. Lexmark would be stupid to cut their own throat by giving the crown jewels to Dell, so a buyout would probably have to be done, but I wonder if there is some way Dell is figuring on getting around this?? I can't see it without a purchase though, simply because the printer guys aren't going to 'give up the cartridge'... Currently Mr. Market is certainly betting big on Dell. The stock has held up amazingly well through this bloodbath. If Dell had tracked Intel ala 9/11, it would be an $11 stock today. Only fly in the ointment is that if Dell is going to take huge chunks of share, then it might have to tough out another multi-year fight (as in the PC market) with the printer guys, as they cut margins on the cartridges in a fight to the death. Key question in the long term then becomes - does Dell win and inherit another commodity market where the consumer is the ultimate winner due to price, and will it become like the PC market, where Dell has to run harder and harder, selling more and more cartridges at lower and lower prices???
Best regards,
John |
