Everything is turning out the way I thought it would...
Dell gapped up as expected, then drifted lower all day, closing near its low. Wild card Intel reported earnings that were exactly what I thought they'd be - Lower than expected top line, earnings cushioned by "other" income (BTW, they would have missed by 0.02 without an extra $150 mill in investment income), projected no-to-negative revenue growth next quarter - overall, a fairly poor showing. It certainly lent no support to Dell's case.
HP's CEO came out and said everything's full steam ahead in their PC segment (a whopping 10% growth), adding that large corporate account bidding is "beyond cutthroat." Seeing how these types of large accounts are Dell's bread and butter, I don't see any positives at all from his statements. In fact, I see quite the contrary. More bidding wars, less margins, blah blah blah - I don't need to repeat it.
I have read all of the posts from those that are concerned with my sanity and general well-being. I appreciate your sympathy; however, I don't think it is necessary. I will make money on this trade - now, it's just a question of how much.
For the record, I still believe the PC industry's condition (revenue and earnings growth, specifically) is going to get much worse before it gets any better. The knife is falling - I don't advise trying to catch it.
All the best,
Todd |
