DELL had great momentum in revenue growth quarter over quarter.
Q Q %GRWTH Revenue
0197 2,412mm
0197 to 0497 7.3% 2,588mm
0497 to 0797 8.7% 2,814mm
0797 to 1097 13.29% 3,188mm
1097 to 0198 17.22% 3,737mm
0198 to 0498 22.00% 4,559mm ???
Where is Dell getting this momentum growth from? Anyone shorting DELL
right now with this type of revenue momentum could be in trouble.
Dell sells 80% to the corporate market where price is not the only
factor driving the purchase. Now, at the consumer level the difference in a 1,500 computer and a 2,500 computer is significant. But, look at HWPs revenue growth with decreasingly net profits. Dell could escape severe price pressures with inventory control. Much of the cost will be passed on to the suppliers to keep margins in tack. In fact margins will keep improving with increased efficiencies as
Dell increases the revenue.
IMO, Dell will continue to surprise to the upside and maybe very
very nicely.
The P/E is 70 for a reason and the revenue stream doesn't hurt that argument.
Rosemary, I like your number <.44> but hope it is low. If so Dell
will see $125 very soon.
JCross
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