Paul, great response to my post. I disagree about
components prices falling enough to compensate for
those low box prices, however. I see growth slowing
big time and I think the stock is now very hyped. Last
three quarters, DELL's earnings growth is less than
10% per quarter average. The stock has almost quadrupled.
I.B.M., however, went from 1.38 to 2.11 last quarter.
Their Revenues are bet. 6X & 7X as high as DELL's, and
they increase earnings growth increased 55% last quarter.
Still, their PE is 16.7, DELL's is 48.12.
Divide DELL into 654 M Shares and you get .27, .29, .35, &
.4 4 quarters. HWP, CPQ, IBM have all done significantly
better, but have PEs of 22, 28, 16.7 compared to DELL at
48.1. Now they're knocking on DELL's customers doors with
cheaper boxes.
MV BABER |
