Jim- I haven't listened to the CC yet, but I have heard at least 2 things already that I like a lot: (1) MD is (supposed0 saying that Dell is targeting 50% annual growth (I am assuming he means revenue here, and not units or earnings)...I also saw (in one other article posted recently) that he had said this to an analyst recently...
This is the first that I have heard MD say specifically "50%"...Anyone, please correct me if I'm wrong......if he (indeed) is referring to revs, that is very exciting indeed.....Add your own fudge factor..But if the target is 50%...I would not bet against him....
If Dell grows revs at 50%....we may indeed see continued margin expansion in the future (enterprise greater portion of overall sales, more & more internet, etc)....so, EPS would, logically, be expected to continue to grow above 50% each quarter....
(2) MD (supposedly) predicted 17% (overall PC annual) growth rate for the next 3 years....He was also quoted stated this a few weeks ago...
Excellent...
Although, IMO, it is clear Dell's share price is going to start appreciating at growth rates closer to its earnings growth (rather than at 00-200%)...the case is still very bullish for (much greater than the market) appreciation for the stock....30? 40? 50%? More? Who knows....
IMO, Dell will still command a premium (above growth rate), even if rev growth slowes into the 40's....look at the more mature tech bellweathers...PE's have stayed very high (even with lower growth)... |
