<<It is very unfortunate that Dell reported a break even earnings just after the following negative market events: 1) The bond market jitters (which are now over). 2) The CPI (energy & tobacco prices) after bond market jitters (a one time blip) 3) The same day that the FED decided to quell the bond market jitters by changing it's bias (will not result in higher interest rates from FED) 4) The same week of options experations! And thats all Dell has done wrong this time around!!!>>
it's interesting: a CNBC commentator stated that what the market was looking for last quarter Dell delivered this quarter. So, on the basis of looking for the numbers last qtr., which they didn't get, but anticipated, the stock nevertheless drove up to $55.
Now at $38, relative to the previous valuation of $55, we're looking at a 40% correction (and SSB is calling for a 65% correction, how quaint) - due in part to delivering the numbers the market was looking for; a few months behind. Dell predicted its sequential growth would be single digits for next qtr. (over and above this qtr), double digits for remaining qtrs. i'm getting too old for this. So, it's not as if Dell isn't delivering. We know Intel cut it's prices on PII which wasn't reflected in this qtr's numbers, so any addtl., cuts by Intel in PIII, could serve to increase gross. The enterprise business is just getting started. They've been running the enterprise business for about six months now (fulltime) and already it comprises a significant portion of their business. Gigabuys is just getting its feet wet. How much hand holding is needed? |
