Thursday, May 18, 2006

Congratulations dear Dellusionals

Okay, Dell is going AMD in 4-way servers.

The world is really upside down. Do you remember I was speaking of going crazy?

Well, this is what I remember from my infancy:

Lucy taking the football off Charlie BrownThat is, Lucy never allowed Charlie Brown to kick the football, and Charlie Brown never learns.

The same thing happened with Dell and the AMD investors: Always saying that AMD was a "distinct possibility" and never actually doing it.

But we will have to rewrite the comic books, this time, Charlie Brown hit the football and scored a 15% field goal. I insist, I am becoming crazy. Unbelievable things are happening too often, I must be seeing some sort of DeLLusions.

I warn you again, I am becoming crazy, you should take what follows seriously, but:

  • Doesn't it arise suspicions that Woodcrest is coming in June and yet Lucy finally allows Charlie Brown to kick the football? Woodcrest can't possibly be so cool...
  • This is not an empty announcement, Dell must have felt excruciating pains to finally gave in to the pressure, that is, the market is there for quad-dual core Opterons and quad-true quad core servers.
  • It is the high end of the market! Dell invited AMD to do business in the elite market, the one with the highest profits, which requires the highest credibility, in which businesses last the longer.
  • It has been demonstrated, just as I been explaining, that the real differentiator among HP and Dell is AMD.
With the field goal scored, the AMD dellusional investor has a lot of credibility points above the rest of the market, this 15% jump overnight will kill a lot of AMD shorts after the squeeze, and won't allow the "why should I hold my shares if it is going down and I will be able to purchase them back anytime?" because another mega jump may happen: Another announcement of a blockbuster product.

Good that I covered my written calls, this is all gains!


Anonymous said...

Sometimes the market goes up, sometimes it goes down:

Thou shall not gloat!