MB,
as far as plain valuation is concerned, I have been down on the boxmakers for a long time with DELL leading the pack. The only reason that I don't take any position in this group, other than day trading, is the potential they have in turning themselves into an internut stock over night.
It is not necessary to have a sound business plan, logic, earnings or all the normal stuff. Can you imagine what will happen to DELL's price if Mickey D announces something like DELL will start competing with egghead and distribute all software. Even worse, what if they say they will start selling CDs, videos, big band music or something obscure?
From an expansion standing, I see no chance that DELL is not figuring out ways to exploit the thousands of eyeballs that they have captured on the net, eyeballs who are already customers. I conclude that with so many other over priced stocks out there, why stand in the way of another potential internut driven disaster.
Ramsey |
