Tim,
DELL was in the 60's in last August. 6 months have passed since then, and 2 more earnings.
So DELL's revenue were lower, but it's earnings were intact (55% YoY growth, right?). Anyway, let's say earnings deteriorate as well, and goes to 45% YoY growth for the next two years. Then, in the mid 60's, DELL's forward PEG is about 1.
Now let's compare this to the S&P500 (about 3).
Did you listen to the CC? They are planning to move further towards a high-margin product mix. If they can indeed pull that off, we are talking margins in the 50% range ala INTC. So, going forward, revenues is not the big issue, margins are.
Besides the two delayed orders may just show up in early Q1 and change the equation short term again.
-BGR. |
