RE: You cannot look at Dell (and falling ASPs) in isolation. You have to compare it to its major competitors. The numbers released this week show that Dell is growing far faster than any of the other box makers, despite the fact that some of them were selling at firesale prices to reduce inventory.
(Fire Sale is 2 words according to MS word spell check. Just had to get a spelling comment in somehow.)
Our opinions differ dramatically on this.
If we only were going to invest in PC stocks, and that was all there was to trade, then it would be important. Problem is there are some 3000 other issues to trade.
From an industry comparison, DELL is the leader, no doubt.
But we are talking about the STOCK.
Everything is compared to itself when it comes to the stock.
And if Asp's fall, there are many money runners that think that is a negative. Especially when DELL has changed their tune when talking about Asp's.
2 months ago, they were supposed to be stable.
Now they are dropping. So, is this a problem with management?
Can management no longer predict trends in the PC market place?
Oh yea, They (Dell's Mgt.) are calling for 10-15% PC growth this year now, In Feb, that number was 18-20%.
Again, Is DELL's management out of touch with what is happening.
They thought 18% PC growth and stable ASPs.
Now it is 15% and declining ASPs.
Well next time who knows what they will say?
I see a trend of disappointment developing here. I know you don't, You don't care that last Q's number was not as hoped for.
You don't care that DELL is issuing Debt to buy back their stock.
You don't care that....well anything.
You expect DELL to grow forever and the stock to go up forever.
I don't
Jim
Sorry, I kinda got to ramblin on this one. |
