The below is all I need to hear. It's perception that matters, investor now know that growth at DELL has indeed slowed, they see DELL in a different light now. They are trying to sell bobbles to make up for it, I HATE THAT, low margin, can get anywhere kind of biz.
Dell himself acknowledged that something of a sales slowdown occurred. Although Dell gained market share against nearly all of its competitors, and grew at more than three times the market, revenues were roughly $200 million or more short of internal expectations.
"We were not aggressive enough in our competitive pricing in the third quarter to see the level of growth in the fourth quarter," that the company anticipated, he said.
"We were a bit lighter in the top line than we expected," said Tom Meredith, Dell CFO. The company was also not as aggressive in cost cutting as it could have been.
To partially guard against future dips, the company will aggressively expand sales of third party products on its Web site, said Meredith.
When the last time you heard the above kind of talk out of DELL? DELL is not going to be the barn burning it was going forward. The above was what I was fearing when I was making the dead money comments. If we get back to the 90s (45 pre split) this year we will be lucky. For those of you that put all your eggs in one basket, you are getting expensive lesson. I myself have had too many shares of DELL. I will be looking to pare DELL back on any rise, this is called overhead resistance, and DELL has plenty of that now.
Greg |
