Edamo, many thanks for the response. I agree with your estimate of the stock's trading range...36 to 44, and essentially following the market's movements. This has been the pattern since the 4Q99 earnings report.
Regarding the issue of "preception"...Dell is the best managed and performing pc box maker around. Look at the problems/difficulties that IBM, CPQ, HWP, NEC/Packard Bell, Micron, et al have had over the years. So, from a pure fundamental analysis point of view, Dell is the winner. As I've said before on this thread, Dell's problem is managing the transition from being a "high flyer" to being a company growing at a rate that is faster then its competitors and remaining very profitable. Of course, growth goes beyond the pc boxes...it extends into the enterprise markets, e-commerce, consulting, support services, etc.
The management of this growth, while maintaining shareholder value, is another issue. Is it possible the Michael Dell doesn't have the necessary experience, or maturity, to handle this part of the business? Yet, Toffler, and Meredith are there to provide guidance as Dell (the company) goes through this process. So, I guess the question remains, how does this transition play out, and at what expense to the shareholders?
Regarding your comments...<<...as i earlier stated, msd book comments about competitors weakness/strength have been thrown back in his face by gerstner and platt and pfeiffer...they have created a "perception" that the pc is dead, a commodity, loss leader, etc.....>>why would Gerstner, Platt and Pfeiffer what to create a "preception" that the pc is dead? In effect, the are telling the world that their pc products are a dying business. IMO, this is not a very good business strategy. If the pc were really going away, then these guys would have to admit the problem is real, and present a business plan that shows how they plan to replace the pc and continue to grow their businesses.
Good luck with your investing strategy. In fact, good luck to all of us.
Stock Bull |
