Hi thread,
This is from Briefing. Com.
General Commentary
Dell (DELL) stepped to the plate and hit a triple... Company
posted a gain of $0.28, one cent above estimates and well above year ago gain of $0.17... Revenues surged by 51%,with strength seen in all regions... Asian sales, including Japan, rose by 49% compared to
the industry average of 2%... As important as the headline figures, was the average selling price and to our surprise company reported no change at $2400... Suggests that price erosion has stabilized... Company also made bullish comments about the future and denied
reports that it was preparing to buy Sequent (SQNT)... Normally such a performance would draw applause from the fans... But when you hit home run after home run, fans get a little greedy... Let's face it, people didn't go see the St. Louis Cardinals play ball in September because they were good, they went to see Mark McGwire hit home runs... And they didn't leave happy knowing he went 3-3 with a couple doubles and a triple - Four sackers is what they came expecting to witness and they left disappointed unless they saw at least one... Dell in the same situation... Street's whisper number was in the $0.29-$0.30
area, so momentum investors were deflated by the actual results.Stock was nearly 3 points lower in early after hours trading..Given Dell's 65% jump off its correction low to new record highs, a little profit-taking was to be expected... Longer-term, however, company continues to execute flawlessly... Weakness should be used as (re)entry opportunity.
If you have already seen this it won't hurt to see it again.
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