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Technology Stocks : Dell Technologies Inc.

DELL 126.39

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To: kemble s. matter who wrote (138221)	8/1/1999 9:29:00 AM
From: Walcalla	Read Replies (2) of 176387

Dell mentioned at bottom of article FROM THE BULL MARKET REPORT COMMENT: Our patience has run thin with Compaq. You must admit we have been very patient with our investment in Compaq, but we note that the consensus estimate for 1999 is 28 cents and for the year 2000 is only 80 cents. (The stock is trading now at 30 times 2000 earnings.) This means we have to wait well over a year until we will have proof that the firm can indeed produce this profit number. What if they falter? We are pleased that the firm is going to layoff up to 8000 people. But will this tear holes in their business design? What will it do for the future? Some analysts think that "it can't get worse and will keep getting a bit better each quarter", but others are concerned about the restructuring necessary to make things right. As you can see, there are a lot of unanswered questions. We like to go with leaders but Compaq is going from leadership to a secondary position. Dell and HP are moving up fast. This hasn't happened overnight either and we're not happy about it. So, we have two choices. Stay with our investment and ride it out and in two years have a solid leader (maybe), OR go with the leaders now. We already have Dell in our portfolio and they are on a path to clear gorilladom so why not take our money from Compaq and place it with the richest man in Texas who has proven time and again that he knows how to sell PC's and make money during the process? We hereby sell our position in Compaq (CPQ - $24) and place the money with Dell ($41.) It pains us to have to do this, having bought it at $25 in April, 1998. But sometimes it is necessary to move on.

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