This qustion is easy to answer. Whether the guy in SB is a jerk or Hero is just a relative
idea. To his big customers like SATYR, who wants to have a position cheap in CPQ, today's downgrade will make this guy a hero, or, he will be a jerk to his customers t Channel,ho wanted to have a big position on CPQ cheap. But to people like me and you in the known, this guy is just a jerk. Just remember, like I said every stock in the market is manipulated by either those fund managers or super rich guy, otherwise stock will never move. Those what so called analysts always serve for their own interest, be it for commision or year end bonus. If CPQ
are really bad, then why ML hold its buy . So, those analysts are just playing the game, that is what I called manipulation. However, today's downgrade is good for CPQ, as it break the trading balance of the past couple of weeks. Just looked how many shares were bought between $32 and $33, with such huge trading volume, the stock really did not drop much.
As to why DELL should enjoy a high PE comparing to CPQ, well there is no reason at all, only few big fund managers have big position in DELL and want the price go up, I call
manipulate up the stock price, just that simple. It is just money game, you just dump billions of dollars into the stock, the price go up. Someday, someone will get hurt seriously when those big fund managers start to dump. Dell is no better than CPQ and is much worse. It is
a short term player
As to those channel inventory stuff. I think those guys probably did not even know what
channel or inventory mean. When you talk about inventory, what products are you talking about? High end servers, or PCs ? the cost of inventory for each is different, because their
profit margins and BOM are all different. When you sell CPUs with high profit margin, little bit more inventory really did not hurt, but if you sell shoes with very low margin, the high inventory will really kill. |
