BGR:
With respect to Price-to-book:
It isn't a "model" thing with me. It's just that, as I pointed out, less than a handful of stocks ever get to 50 times book, and when they do, they inevitably make superb shorts. Personally, I think Dell was, is and remains a great short because it is in a lousy business at a lousy time to be in that business,....supply massively submerging demand.
Dell does a good job of BTO, but so what. The company is a superb marketing organization, but again, so what. The problem for Dell is the same for ALL the players in the PC game. Too much supply, and a saturated market.
Dell's other problem, again as I have pointed out, is that they are not competitive at the bottom of the PC market sales spectrum, and that is where all the action is.
If you're still long this puppy, I would suggest some reconsideration. Michael hasn't been selling his stock at the legal limit because he thinks it is going to go up. It's still in never-never land based on normal valuation parameters.
Best, Earlie |
