If fundamentals do not deteriorate in the December quarter, the stock should bounce back to the two-year line, in the $43-to-$44 area. If its outlook continues to improve, over the next six months we expect the stock to fill the gap in the $50-to-$55 area.

[And while some (including Kumar) are convinced that Intel's recent troubles may mark the nadir for the stock, it's hard to see what might send PC chip demand moving smartly upwards again.] If Moore's Law continues in force, ... the performance of PC processors and the systems they power will continue to bound farther and farther ahead of what the vast majority of buyers need.

A similar increase in transport charges has also been enforced this year.

That's been our trademark all year long. It's not always in the first quarter or in the first half, but usually by the fourth we've been able to turn things in our favor.

They've been wrong the last two years about what the second quarter fundamentals are going to look like. Fundamentally speaking, it's probably not a good ideal to pre-empt the market.

Tyco is not Enron. The fundamentals at the company were what they should be.