Hi Sig,
Well, I certainly have nothing against the Indian people, but if some of these new hires are for call centers, and if Dell doesn't improve things in regard to the language barrier their service ratings will continue to tank. As for the company, yeah, it's been doing great since the stock first cracked in 1999, but here it sits below 35. They have had a long string of strong execution, but one screwup and I could see a dip into the twenties again pretty quickly. By the way, we seem to always talk about tech issues selling at a muliple of sales, like 2x or 4x. How about GM selling at a multiple of less than 1/10 of sales. A firm with sales of just below 200B/year now has a market cap of 15 billion. Shows how unforgiving the market can be, and also makes one wonder what happens to those relatively huge tech market caps if things really slow on a secular basis in techland...
Best regards,
John
PS - It also makes one wonder why GM keeps making the same mistakes and not firing top management. They have said they are going to 'win back' market share for the past 30 years, and it keeps going in the opposite direction without fail. |
