re "Bearons (sic) (Vbg) article"
Greg, thanks for the post. Found the following items tres interessant
'... Kevin McCarthy, an analyst at Donaldson Lufkin & Jenrette, lowered his recommendation on Dell ... "I just think it's dangerous to assume that Dell could continue to operate in a separate environment from Compaq," he explains.'
Note the 'continue to operate in a separate environment' -- what indication do we have that anything has changed?
'Even if price pressures have only a marginal effect on Dell, the stock could be hurt because it reflects such optimism. Just last week it was labeled "the last hot computer stock" on the cover of Fortune magazine, a dangerous indicator if ever there was one.'
Dell's stock kicked off 1998 at $42, and last Wednesday, it hit $77, an 83% return for those who were lucky enough to buy at the turn of the year. Shares have responded to recent bullish remarks by Michael Dell, chief executive officer and founder of the Round Rock, Texas-based company. Dell predicts that his company will grow faster than the rest of the personal-computer market this year. The stock now trades at 30 times 1999 earnings estimates.'
As I have stated before: Dell, the man, and DELL, the company, both have too much to risk by senior executives making misleading statements (even if Michael did not possess the enormous integrity we ascribe to him, which would prohibit him from doing so). This is doubly true for forward-looking statements which would be very easy to hedge at the slightest indication of trouble.
So who should we believe? I personally trust Michael and hope that the article creates a dip in price, as I plan to buy 300-400 more this week.
DELLish, 3 |
