If I only could, I'd make a deal with God, get him to swap our places.
This cover's pretty good.
I just finished typing up my Liz Fein
4/2/2007
Investors Hunger for a New Diet at Dell
Wall Street wants Dell to go on a “crash diet” to increase its stock price. Dell is one of the world’s largest PC (personal computer) companies. It has had the highest profit margins because of its inexpensive way of selling their products to consumers.
However, their expenses have gone up quickly, more than 30% to $1.7 million in the past two years. They’ve fought to keep their sales rising at the same rate.
The reason is that their massive employee-count has increased; it’s jumped almost 50% to 82,200 workers. During this same time, the company’s revenue rose 7% to almost $14.4 million.
The combination of rising expenses and slowing growth has hit Dell’s profits.
Dell’s operating margin has dropped to 5.6% in its most recently reported quarter-ended feed; down 8.2% from a year earlier.
Their rival, Hewlett-Packard Co.’s operating margins have increased recently to 4.7% from 3.9% a year before.
All of this has majorly effected Dell’s stock price. Their shares, which trade on the NASDAQ Stock Market, are down about 25% in the past 12 months. They are down 9% since the start of 2007.
Dell closed Friday at $22.83, down ten cents.
The shares trade at 19x estimated per-share earnings. For the next four quarters, they will be richer than their competition, HP, which has an approximated price/earnings ratio of 15 for the same amount of time.
Wall Street says that one of the “PC industry’s leanest companies has gotten too flabby”.
Sunil Reddy, a senior portfolio manager at the Fifth Third Asset Management Unit of Cincinnati’s Fifth Third Bancorp, says “Dell’s costs have to come down for its profits to go up.”
He said he “wouldn’t be surprised if a work-force reduction plan was announced”.
He also said “Investors want to see Dell’s operating margins rise to the 6% range.”
Fifth Third - who doesn’t associate with Dell, business-wise- owned 304,808 Dell shares at the end of last year.
Dell has a market value of $52 billion and needs to begin “cutting heads or holding keeping operating expenses steady and growing sales”.
HP’s earnings and revenue have improved. Its stock is up more than 21% over this past year.
At the New York Stock Exchange, shares of HP (which has a market value of $107 billion) closed at $40.43 - down two cents.
“Dell’s workforce has ballooned” recently, because the company has added workers in its manufacturing plants and its call centers for sales, support and service.
Last year, Dell’s Service Center said it vowed to “invest $150 million to improve its ’customer experience’.”
The company also said this year, that it would add plants in Brazil, India and Poland.
“The investment hasn’t paid off in reinvigorated sales.”
yay me. now, if only my printer worked.
Paul's gonna do C today, apparently, and go to a rabbi's house.
oh boy. ^_~
okay..time to go downstairs or something.
I just finished typing up my Liz Fein
4/2/2007
Investors Hunger for a New Diet at Dell
Wall Street wants Dell to go on a “crash diet” to increase its stock price. Dell is one of the world’s largest PC (personal computer) companies. It has had the highest profit margins because of its inexpensive way of selling their products to consumers.
However, their expenses have gone up quickly, more than 30% to $1.7 million in the past two years. They’ve fought to keep their sales rising at the same rate.
The reason is that their massive employee-count has increased; it’s jumped almost 50% to 82,200 workers. During this same time, the company’s revenue rose 7% to almost $14.4 million.
The combination of rising expenses and slowing growth has hit Dell’s profits.
Dell’s operating margin has dropped to 5.6% in its most recently reported quarter-ended feed; down 8.2% from a year earlier.
Their rival, Hewlett-Packard Co.’s operating margins have increased recently to 4.7% from 3.9% a year before.
All of this has majorly effected Dell’s stock price. Their shares, which trade on the NASDAQ Stock Market, are down about 25% in the past 12 months. They are down 9% since the start of 2007.
Dell closed Friday at $22.83, down ten cents.
The shares trade at 19x estimated per-share earnings. For the next four quarters, they will be richer than their competition, HP, which has an approximated price/earnings ratio of 15 for the same amount of time.
Wall Street says that one of the “PC industry’s leanest companies has gotten too flabby”.
Sunil Reddy, a senior portfolio manager at the Fifth Third Asset Management Unit of Cincinnati’s Fifth Third Bancorp, says “Dell’s costs have to come down for its profits to go up.”
He said he “wouldn’t be surprised if a work-force reduction plan was announced”.
He also said “Investors want to see Dell’s operating margins rise to the 6% range.”
Fifth Third - who doesn’t associate with Dell, business-wise- owned 304,808 Dell shares at the end of last year.
Dell has a market value of $52 billion and needs to begin “cutting heads or holding keeping operating expenses steady and growing sales”.
HP’s earnings and revenue have improved. Its stock is up more than 21% over this past year.
At the New York Stock Exchange, shares of HP (which has a market value of $107 billion) closed at $40.43 - down two cents.
“Dell’s workforce has ballooned” recently, because the company has added workers in its manufacturing plants and its call centers for sales, support and service.
Last year, Dell’s Service Center said it vowed to “invest $150 million to improve its ’customer experience’.”
The company also said this year, that it would add plants in Brazil, India and Poland.
“The investment hasn’t paid off in reinvigorated sales.”
yay me. now, if only my printer worked.
Paul's gonna do C today, apparently, and go to a rabbi's house.
oh boy. ^_~
okay..time to go downstairs or something.