brian, do you know the current estimates? aren't they still in the $0.40 range? wsrn has $0.52. i'm not sure it is up to date, though.
i can see gtw making $0.20-$0.25. anything substantially higher would turn microeconomic theory on its head. you mention that components have decreased in price and this will help profits. true, the gross profit per box will go up. however, the cost is that they will have fewer sales b/c everyone else passed those savings on to the customer, hence, the hp p166 for $880 i bought for a family member this weekend - w/ free monitor.
comparing gtw and dell is like comparing huyndai (sp?) and mercedes. completely different markets. dell is working wonders and it is b/c they are not in the low end consumer market where gtw is. dell's asp went up 2% year over year b/c they are now selling more high end corporate systems.
muei is a much better like to like comparison and we all know what happened to muei. btw, they cited weakness in notebook pricing as one reason for their disappointing results.
i'm not trying to flame. sure, we disagree, however, i think others like the debate so they can decide for themselves how to profit. i enjoy the debate b/c i'll learn something, whether i'm right or wrong, and i like learning things so i can profit more in the future. it also keeps me thinking.
i'm really interested in the current estimate, though. if it is $0.52 and gtw beats it then i expect the price to go up from here. i just can't see anything above $0.25 and i don't think anything close is likely. nor do i see $0.20 or so in the xmas q supporting a $28-30 stock price. |
