Bill,
Dell is going after the server market with a vengence. They are third behind Compaq and HP. They will be second in the near future.
On the retail side, Dell gets the cream off the top. As long as they can do this, fine. Every time the stock runs up, "smart" people say take your profits and run, then DELL beats estimates again, and again.
Also, internally, Dell is not run as efficiently as you might think. Often one hand does not know what the other is doing. There is still a lot of room for improvement and profit.
Dell seems to jump 20 points going into earnings then pull back. Probably about what it will do this time too. Actually, DELL beaves a lot like Intel used to act. My friend, Jack Rains, who used to post here and trade Intel actively, is now trading DELL for this reason.
He was a great guy to have around.
Jim |
