re: "kumar's komments"
yes ma'am....believe the market looking reasons to sell off or hold down certain issues....but when all the excuses and irrational hypothesis are proven wrong, things move up....dell will be relatively soft near term, but strong long term...let us be logical, if a company grows 25% per annum, we double in a bit less than three years....in the "real world" of business, this is an incredible accomplishment...i'm not married to dell or any other company, but long term it is management that creates wealth for investors...
kumar kommenting on "y2k lockdown"....it's only a temporary thing, if it truly exists...if y2k a problem, it will hurt more than the hardware manufacturers..who in fact will profit by any miscue, as they can afford an instant fix with compliant machines...
as far as sub 1k, sub 600, sub 300, and yes even "free" machines, that are upsetting the market...you can't stay in business with thin margins and little service or quality....tremendous marketing faux pas by anyone who attempts to enter and maintain sales purely on pricing...if computers are a commodity as many state, and autos are also a commodity, and a commodity is a commodity, then i quote from today's ibd..."hyundai goes upscale to regain former glory"
"the carmaker's initial success was based on it's rock-bottom prices. but the strategy backfired in the wake of endemic quality problems that left it lagging at the bottom of the j.d power quality and customer satisfaction charts. what once seemed a good value suddenly seemed just cheap, admits finbarr o'neil, president and ceo of hyundai motor america"
easy to move downscale with a quality product than the reverse...someone views a dell machine value at $999, but an e-machine at $999...not!...as ibm recent ad blitz.."why buy a no name when you can own an ibm for $999"
computer asp's will stabilize and move down not by competitive pricing pressure, but by passing on manufacturing efficiencies and component cost reductions...we are truly at the beginning of a new millennium, and the industry leaders will position themselves in whatever sector of technology will grow and be profitable....dell is not commodore, and viewing one quarter at a time is risky and foolish...
if your goals are to accrue wealth long term then dell, msft, intc and even an aol should be core holdings, if your desire is to trade, then look at the more volatile issues as cmgi, or sell the derivitives against your long positions...you can't have your wealth and spend it too, in today's market dynamic....good luck, ed a. |
