Hi Mohan:
Its a great night out here on the prairie - big year for wildflowers and now for the fireflies.
A few general comments on Dell:
1. The book, Direct from Dell,was published I believe in Feb. Now every CEO who did not know before, knows how to make a fortune. WRONG. But the clue is they think they now know enough to be
just as successful so can go their own way and improve upon Dell's system.
So familiarity brings contemp, and there were no miracles or new inventions revealed in the book that would show Dell growing at more than its steady boring 40 to 50% pace and thus outpace the
roaring and exciting web stocks and IPO's which attract so many dollars.
Brokers will be pushing the IPO's. (70 coming up) for huge profits rather than pushing Dell.
But it was a bit like Edison publishing a book called " How Every Man Can Be A Successful Inventor" . It sounds easy until one tries to do it.
The main effect of the book. IMO, was to light some fires under those who were hesitant about going on line with E-commerce which is all to the benefit of those who do and of those who are building
the Web .
2. It has been very painful to see Dell's stock performance linked so closely to other related companies. I think that comes from the trading floor on the NYSE, where the A type personalities get
word that Intc or Cpq for example warns. And the word gets shouted out "DUMP THE COMPUTER MANUFACTURERS" so loud its is heard clear over on the Nasdaq. and by the way,"dump the chip makers too".
In that atmosphere Dell's unique qualities so well discussed by Chuzz, get lost in the noise. And down we go with all the others.
Its tough to watch the best analysis done by the thread be so overlooked by market makers.
3. Tennessee. Dells operation in TN is far more than a mile square area of plants. It will be a whole new city, when it is realized that it requires perhaps 3 or or more people per employee to
man the stores, auto sale/repair shops, schools etc.
So for 5000 employees the city will approach 20000 or more.
Huge advantages over San Francisco or Silicon valley. Production people will be able to have new affordable housing and living expenses. No slums. Modern roads and access. Close to plant.
And a few touches of beauty approaching that of Austin.
Damn all if Mikie is not going to build a city there. And he is going to have some very loyal employees who will also be shareholders as are perhaps 24k Dell workers today who were granted 200 shs and which have now become 400 shrs.
Am hoping to hear more about TN, Brazil, and China at the July meeting. Until then I hope MSD continues to do those things he is
best at, and not waste his time trying to control the daily stock price.
The future looks swell, with Dell.
Sig
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