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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (75215)	3/1/2024 4:50:56 AM
From: Harshu Vyas	Respond to of 78481

You just can't lose buying "tech" at the moment. Product revenues down close to 20% YoY and services up 4%. Were the "beats" that great to warrant a 20% move up? I suppose right now servers are "more" profitable so net profits up 32% YoY. Or is the fact its "AI servers"? Or its it the fact that they've increased their quarterly dividend AGAIN! Maybe a combination of factors. What should really spark your interest is the cash flows - $8.7b vs $3.6b last year. Strong demand cites strong cash flows and that's the beauty of Dell's operating model. They win outrageously when they've momentum on their side. Last year, they generated $0.5b of free cash flow compared with close to $6b this year. Still nowhere near the 2020 peak of over $9b (2021 was $7.5b). If this demand continues, this could end up at a crazy place... Personally, I'm steering well clear of buying tech. At this point it's just too far beyond me and I can't keep up. When I mentioned Dell in January the valuation was fair. Now it's already reached my estimated fair value (in the pre-market). Speaking of slower moving companies, is Wolverine World Wide finally on its way? Shame I've no position, but I wish the company and management well. Unfortunately, I've had to cut my VF position, too, to make way for CUTR. The stock collapsed on no news a couple of days ago. My bet is purely on business survival but I could be very, very wrong.