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Ian, my friend , I have not punned with you in a long time and I wanted to say Hello, and get your opinion on Dell: I have not ventured here before and do so with timid heart in this maelstrom(berg)!!!What got me interested in DEll was Michael Dells book which I read on vacation and the hope to buy the stock on a dip---Knife catching ala asyt, but I saw an article in Forbes Mar 8, which in addition to giving credit to Mr William Michaels for his acumen and guts, also paints a negative spin on Dells growth in the third quarter at 12.6% and US growth at 2.6%;the article states that some of the poor growth comparisons are due to the fact that the competition had made higher numbers due to the sub 1000 market ; and now I get in the mail a flyer for a 1000$ Dell PC --what I would like to know is how the profit margins in the sub 1000 area will affect earnings as best you can guess; if I can get a Nokia cell phone for 99$, and Nokia is growing profits, then all this talk of competition is bogus, but if sub 1000 is an area that will be a much larger part of Dell, and margins are thinner than the 2000$ machine, then there will be decreased earnings growth and the multiple may decrease; This market is so counterintuitive its beyond scary; ---In any case , this time it IS different: worlds longest, largest, unpoppable internet bubble; I guess some day it will be in the Guiness Book-- any help on Dell, and please be Well!! as you would say, FWIW ps, do think pcor's business model will affect dell, thanks |
