Chuzzlewit,
Have you seen what the analysts had to say about GTW's quarter ?
Here I will tell you the highlights, The mostly sound the same.
1) Revenue was a little light.
2) Unit sales were good, but we expected a little better, up 38% Y/Y
3) ASPs down 3% sequentialy and down 12% Y/Y, the largest in some time for the company
4) this resulted in Rev growth of only 22%
5) the 400Mhz PII may stabalize ASPs short term, but longterm the direction is down.
6) The Upside was due to Increased Margins.
7) the margin suprise was due to much better inventory controll.
Turns up to 26, and inventory is down to 14 days.
8) European revs dropped 8% despite 4% unit increase. This was a downer.
So, In summery, GTW gets good marks for substiantialy improving on opperations. But GTW deserves caution concerning ASP decline and revenue growth.
Then different analysts say that this is the greatest thing in the world and reitterate their infinity price targets, or they say good,
or they say OK, but My boss says I have to maintain my buy on the stock.
Can DELL improve their margins by 150 basis Points like GTW to provide a nickle upside ?
19.5% GM was the highest in GTW's history.
Jim |
