Do you have a reference regarding manufacturing costs for Dell, Compaq, and others? We just got IBM, Gateway, and Compaq's earnings, Dell's come out next month. Do you think the company with the highest earnings has the lowest costs?
Imagine if Compaq starts selling direct. What do you imagine their retailers will do about their new competitor?
The under $1,000 PC is a new market. It might do very well. I suspect it will be a nice source of income and profit for Compaq. Compaq also sells more expensive PCs. Is Compaq starting a "price war" with Compaq?
I believe there will be a report out Monday on PC market share. If Compaq is increasing market share, I will buy some. Do you know of any other factual information coming out soon regarding the PC market? The next thing I am aware of is the August Dell quarterly report.
I don't have much confidence my own ability to predict market corrections. I rely on my ability to pick leaders in fast growing industries. I moved from mutual funds into stocks last October and wasn't fully into stocks until this April. I ended up with Intel, Microsoft, and Dell, and CSCO. I am not looking for a quick buck, and I don't know enough to time the market. In retrospect, I have been badly underestimating the impact of "not good enough" news. I knew Microsoft's 86% growth over last year disappointed a lot of people. In retrospect, the Microsoft thread gave me plenty of warning the evening after their earnings came out. |
