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Technology Stocks : Dell Technologies Inc.

DELL 122.70

+0.2%

3:59 PM EST

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To: Chuzzlewit who wrote (135528)	7/5/1999 1:34:00 PM
From: Mike Van Winkle	Read Replies (1) of 176387

Chuzzlewit, the loss leader strategy works only if the fries and drinks are competitive (cost, quality, delivery, etc). Hence IBM moving manufacturing out of US. Earnings for components are not inflated if market pricing is used and IBM is losing money if they go into subsidized machines. Partnering is the solution around internal manufacturing deficiencies. While Gerstner plays games, IBM is losing money. Just some thoughts. Mike

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