Paul, I saw that too, but I'm not sure whether he was referring to the products themselves, the stock as a long, or both.
IMHO, the products themselves aren't junk. I'm probably going to upgrade after the holidays, and I'll be looking at MUEI and if the best value comes from MUEI, no problem buying one.
OTOH...
IMHO, DELL and CPQ are the strongest players in the PC market in terms of competitive position and maybe the higher forward multiples reflect some acknowledgement of that (granted, DELL definitely has had that mo-mo feel to it this year).
There are also the issues of overall PC demand, sub-1000 boxes, East Asian exposure which you could argue increases the risk that the forward numbers in the sector will come down. Maybe the thinking is that if there's some sort of secular downturn in the PC market, buy the leaders.
I don't know. I'm neutral on MUEI - there's stuff I like, but there's also stuff that concerns me. Maybe he's seeing more of the "reasons for concern" coming into play sooner and with more intensity than some of us do?
Good trading,
Tom |
