Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Techplayer who wrote (59859)	10/5/2000 8:14:15 AM
From: Benkea	Read Replies (1) \| Respond to of 99985

"Dell specifically mentioned that lower end PC's were ramping up. that means more boxes for less money. More boxes means more Dram. just an opinion." Dell also specifically mentioned component prices are tanking hard. "If there is a significant slowdown in computer sales, as indicated by DELL, INTC and AAPL, it means that DRAM prices will be falling, unit sales falling and earnings trend reversing." And the #1 PC contract supplier, and the #1 OS company to go with the #1 PC semi conductor co. and #1 PC boxmaker. They were yapping "INTC specific...AAPL specific...blah, blah, blah". The writing is on the wall and the public denial to facilitate full liquidation of PC company stock by institutions so Joe Blow is left holding the bag is just about complete. PC's are getting saturated (mature) and demand is slack. There was no "putting off til Y2k was over". What happened (it was obvious) is that companies laid out the big bucks to do ALL their upgrades AND MORE during 1999 when everyone was ignoring the cap-ex as Y2K preparations! Now, they don't have to spend and aren't spending and Y2k earnings are not going toward tech cap-ex. The sad thing is "the street" has trained the sheep to use "P/Es on 12 month projected EPS" when the last 12 was nothing but borrowing from the next couple years. The ROE (even ignoring options) and growth was not and will not be sustainable. This is not just PC specific either, IMO.