JP,
Good JOB here! But let me see now -
I cannot see the managing of the company books to primarily boost the stock price, and I don't know that the debt is going to be used for buying back the stock. I will have to wait and see how the money is used, and since DELL has been so successful in the past, I will definitely give him the benefit of the doubt in this case.
I would be interested in what you think might cause the JIT-BTO model to fail? If the parts are not taken into inventory, even though they may cost more later, isn't it better than accepting parts that are obsolete just to get a lower price?
Won't bet ya $1, but how about a BEER! We can toast each other on some warm summer day!
As for the supply cycle, I would expect some 'flexibility' in the amount of time that the parts have to be delivered in, and the market would have to drop off pretty significantly in order for this too happen. Cold the parts be sent to one of the other world wide operations for use, thereby not causing the falloff? Who really knows?
CPQ may indeed get a better price by buying so many more, but then CPQ will have the 'stuffed channel' with all of that 'obsolete' equipment to 'sell' at 'firesale' prices. Is this wise use of resources from the shareholders standpoint? If DELL continues to offer top 'speed' machines at good prices, IMO, CPQ will feel a lot of pressure to get rid of their product.
I am not ready to say the demand is in long term decline, maybe it is just regrouping, or just a 'glitch'.
As for $1.50 razors, I have a full beard, and I don't shave any part of my body, so I don't by razors! I always ask those that shave, if they shave their legs and underarms also! That usually ends that part of the conversation.
Regards,
Ken |
