<<My point is that one may not be skeptical of DELL's corporate guidance (as they clearly stated in the last earnings that the pipeline in the Q1 is the best in years and have reiterated good progress recently) while accepting the Emachine CEO's comment w/o further analysis, particularly when you accused DELL bulls of having their head in the sand.>>
I did not say that all DELL bulls have their head in the sand. That would be absurd. Some of my colleagues own DELL and can give a pretty good analysis as to why. If I don't agree with their analysis or find some parts problematic, that's what makes markets.
OTOH, there are some people on this thread who definitely have their heads in the sand. I prefer to analyze stocks, not treat them as a religion.
As for Emachine's CEO, I haven't accepted the prediction of profitability this year as truth. In fact, since I can't own it right now, I don't really care. I mention it however because someone else lumped them together with another company and intimated that they just lose money. Clearly, that isn't their strategy.
OK, I just read Rollins' statements you linked. I'll give you my take for now.
He says business is good, but declines to provide specifics as to whether DELL will make forecasted revenues or earnings. That's fine, he doesn't have to. He also says that DELL doesn't want to compete in the "well below" $1,000 segment. That too is fine, but it doesn't tell me what that means. If the segment between $599 and $1,000 is growing substantially, is that where DELL concentrates; that is, the sub-599 area is "well below?"
IOW, it's a nice comment, but institutional investors won't make much of it until the specifics are mentioned. |
