Thanks for your posts Paul, here are some casual comments on Dell valuations:
Dell ran mostly flat from Mar 1 to last week in April,
seven weeks being a bit longer than the more usual 3 to 5.
The happenings of those times, cheapy computers, stuffing
of channels, buyout of Tandem, postponement of new Intc plant,
asia expectations, accusations against Msft, companies quitting
the commercial computer business, declining computer sales growth,
declining computer prices, declining company earnings/growth,
possible postponement of Win98, possible delay of new Intc chips
All counted as negative factors for Dell built on guilt by association. Dell not entering the under 1k market, not buying a service company, all rated as negative factors.
IMO the bears had their days( many of them) and did not even see it.
That opportunity is lost, Dell will now run up to earnings and
approach a more realistic higher value based upon its potential
earnings, growth rate, and bright future to result from new
products, new facilities, new service contracts with Wang and Unysis
which will be additive to earnings.
It seems a poor time to sell or short Dell with the normal
analyst-beating earnings coming out and a vote for 3 bil vs i bil
increase in shares in the works.
Sig |
