Dorine, there is nothing wrong with Dell. The problem rests with the Analysts and the institutions. They have a great influence on the stock's price. IMO, the problem lies with Dell's pe ratio, and how much the MM's want to pay for a stock given its pe. Dell's stock price has be predicated on a high earnings growth, and beating the Street's expectations. Dell's pe was based on the company growing at over 50% per year,ie, revenue growth. I think we can agree that Dell growth over the past two quarter's hasn't been up to their previous quarters. The eps didn't meet the whisper number, which is believed to be 1 to 2 higher than the 16 cents. So, the MM's will adjust their expectations for future growth, and will lower the price of the stock. The pe will come down and that's that.
Hope I'm wrong, but I don't think so. IMO, the "high flying" days of Dell are over. As Edamo pointed out in a posting to me, Dell will perform in the future more like Msft and Intc. I must agree with his comment.
Stock Bull
PS: I am expecting that over the next few days we are going to see some downgrades for Dell. |
