Yeah, on that issue, there are a number of investors here on SI, (I believe Gary might be one, not completely sure though) who just philosophically have problems with valuing "infrastructure" as the key technology offering of a company. Dell is one of these companes as is Amazon, etc. where the distribution model is really where the value add lies as opposed to the technology they sell to end users(if they even sell technology at all). No matter how many times you explain this concept of infrastructure technology being key to the valuation, the argument seems to come back to the end user product offering, i.e. Amazon sells books, B&N sells books they are worth the same, blah blah blah.
Its really not that bad on this thread, because Dell is such a visible mfg automation powerhouse, but if you go to peapod or Amazon, forget it the bears either dont understand, or dont want to understand. Im really tired of explaining this issue. If I were a bear I would listen to the argument and try to counter it, as opposed to just ignoring the argument and requiring the bulls to offer up the same explanation again and again....
Michelle |
