<<< I feel, as a stated during the week, it will take 6 months
before we make another high, by then CPQ will have time to prove that DEC and the direct angle are working, and DELL will have adjusted, and the mo traders will be replaced by holders that can take 20 to 30% price appreciation going forward.
It's up to DELL, as it should be, to prove that it can still grow at 50%. >>>
Have you considered that Dell has been constrained in the
past by both manpower and facilities, with which growth could have been even greater.????
That metric 12 Facility opened one month ahead of schedule in June 1997 and (per what I hear), has been running two and even 3 shifts to keep up with demand.
Beginning with one plant in Ireland, that is now becoming three plants. And to obtain adequate manpower, a new US plant is being discussed.
So both the manpower and the facility problems are being addressed, especially by the ten new buildings on the 570 acre Austin site, of which the first has just opened.
. Overall I believe the past growth figures were controlled by the desire to have a manageable growth rate( manpower assimilation and training; facility construction and activation costs), rather than just by limited sales.
Dell has managed 50 to 65 % in the past, should be able to
do it in the future.
In addition the new ventures( sales of HP printers, Kodak cameras, and other peripherals) will add to the bottom line, do not require much factory space and the "direct sales method" will be efficient in manpower.
As long as Dell performs well, the MM's and the market will honor it with a high P/E.
Sig |
