Zeem, the only thing that Dell has done since the last earnings report is regain the majority of its correction. IMO, the stock will sit in the 93 to 95 dollar area until the next earnings release. If growth and the ASP's don't meet the analyst's expectations, the stock will get killed. Of course, there are other financial parameters that will be closely analyzed...growth and ASP's don't tell the whole story.
If one looks at Dell with an objective viewpoint, what do we have? A pc box maker with an excellent manufacturing and marketing business model. The model can be copied by other box makers. So what does Dell then have left? Great performing pc's? I doubt that great performing pc's will keep Dell afloat, as a pc is a pc. All the box makers use the same technology and components to design and build a pc.
The larger Dell gets, the greater the risk for the company to stumble. If this happens, good bye Dell. The p/e will be "adjusted" by the Street to be in the area of 20 to 15, or less.
Stock Bull
PS: When I used the term pc, I am referring to desktops, portables, servers, workstations, etc. |
