To: Teflon who wrote (22894 ) 5/19/1999 11:06:00 AM From: Sir Francis Drake Read Replies (3) | Respond to
I wasn't surprised by Dell's earnings, so much as Michael Dell's bullish comments before the earnings. I think many took that to mean Dell would blow away the #s like in the good old days. When that didn't happen I think a lot of credibility was lost - fairly or not. From now on people will become a lot more skeptical of what the man says. When a stock is priced to perfection, any tiny shadow can have huge consequences. The report itself is very positive IMO - it's hard to fault Dell's performance. But that is not the point - the shareprice is at a level where such performance *and better* is necessary in order to maintain price momentum in the stock. Following the Feb blow, this is another (minor) blow. This is a great company by any measure. But the stock may have seen its greatest appreciation. From now on, the "benefit of doubt" will not be there anymore - Dell will have to "earn" a higher multiple the hard way.
