"DREWTERS REPORT" ANNUAL MEETING ADDITION DELL SEES TREMENDOUS GROWTH OPPORTUNITIES IN MANY AREAS
Mikey gave an upbeat assessment about Dell's opportunities to grow in the Europe, Asia, consumer, small business, South American, server/workstation/storage market segments.
Dell is #1 in Profits, #2 in Revenues and #3 in unit sales. When asked about the sub-$1k business, Mikey said he would rather be #1 in Profits and #3 in unit sales than the other way around (taking a shot at CPQ).
When asked about higher margin %'s on sub $1k's, he responded that Dell does not report its earnings in %'s, it reports its earnings in $'s. He also said that if you take it to the extreme, you can sell mouse pads that have an 80% margin, but you're not going to make alot of $'s.
Mort old boy, indicated that China and the new Austin plant will be up and running later this year.
Dell continues to benefit from the direct business model. They are using this approach with a focus on continuous improvement to reduce cycle times and compress the time between orders and delivery. We went on a factory tour of the metric-12 facility yesterday. We pulled a traveler from one of the PC's being assembled (at random). The traveler indicated the PC was ordered the night before and was going out today. It was an amazing process. The supplier's trucks were backed up to the assembly lines. This was their wharehouse- nonexistent. Several of us bought more shares at the conclusion of the tour. NOBODY CAN COMPETE WITH THIS OPERATION!!!!!!!!!
When we were at dinner last night, we met up with three Dell employees. They said they heard a rumor of a three-for-one splitsky. We'll see.
I called my wife after the meeting (she was so jealous she isn't here). I told her to sell everything else and reload on Dell.
It is amazing how many lives have been changed by owning Dell. We met someone at dinner last night who owns a small brokerage and has 600,000 shares (nice country America). He told us diversification is BS, you have to concentrate to make real money. Someone else is retired as a private investor after turning 1 million into four in two years on Dell.
I think we are going to be RICH!!!!!!!!!!!!!!
:o)
Drew |
