Hank & Hank,
Today I finally jumped in back again on the good ship Dell.
I would like you to know that I'm extremely gratefull that
shorts like you drove Dell stock-price down. I bought it at
$81.
Suppose Dell will not beat the estimates this quarter, but
report in line with analysts expectations. Their trailing
earnings will be 2,28 (compared to 2,02 at this moment).
You have a price-target of $60. When Dell reaches that number
their trailing P/E will be about 26.
So the only thing I can say when you mention the $60 price-target
is huh huhuhuh huhhuhuhuh. I don't take the $40-target serious.
I promise you that if Dell reach that number ($60) I will post in
5 threads of your choice that you are a brilliant investor,
and that I'm a born loser. If you have additional wishes let
me know. No problems. There is no way it's going to happen.
NO WAY!!!!!!
Let me help you a little to understand Dells fundamentals.
We are doing this all the time when we have a new bear
on the thread telling us that Dell is overvalued.
It is kind of boring for the Dell-bulls.
Because we always have to use the same arguments
- Very, very good management
- Unprecented track-record of tremendous growth for a very
long period of time,
- Price-war is killing the little ones, CPQ, DELL & HWP
will benefit by increasing market-share,
- Dell just recently entered the WorkStation-market. Lots
of reports can be found that UNIX-based systems are losing
ground to the Wintel-vendors,
- Dell just recently entered the server-market, and is
grwoing like hell,
- At this moment only 2% of the citizens of planet earth
owns a PC, there is a lot of work to be done,
- South East Asia is slowing, so what, China has a tremendous
market, Europe is finally recovering, no more "sluggish european
sales", and soon even Japan wil recover etc.,
- divergence between PC and TV
- ongoing share-buyback programs by Dell,
- Internet is the killer-app of the century, and we are only
at the beginning,
- Dell's BTO-system is copied by the other major vendors, but
no one is able to copy their direct selling model so far
- Exponential growth through the internet, soon their will be
a press-release that Dell sells $4 milj.
It is your choice to learn it the hard way, so be it.
Enjoy every down day.
Paul |
