Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 138.98

+4.0%

Dec 4 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: kemble s. matter who wrote (140830)	8/28/1999 9:31:00 AM
From: Sig	Read Replies (3) of 176387

Hi Kemble: RT: Fool article >>>This article should be saved by every DELL shareholder...An outstanding article which portrays the DELL direct model as unstoppable..>>> You took the words right out of my mouth- the writer is good Provides a clarification of why Dell did not buy a service org., in that Dell, while reducing the cost of P/C ownership, would be trying to reduce the amount a company has to pay for services, not increase it. Complaints about Dell's high P/E ( about the only area left for bears to attack), could be eliminated by Dell investment of a portion of the $4 bil assets in stock of a growing company like Msft, Intc, Qcom. Sell it a year later for a profit of say 100% or $2 bil . Cut Dells P/E in half and bears argument vanishes. Several problems here: 1. Taxes- may have to pay 50% tax on gains so only achieve a 50% return while Dell already achieves a 189% return for money used in their own business. 2. One quarter later and again one year later the stock would plunge when profits become half what they were in the previous quarter or year.( And risk of major loss if other stock did not perform) So I assume that Dell management has a pretty good idea of what they will use the $4 bil for and it will related to growing the company. Perhaps investments behind the lease program or in companies that provide products/services used by Dell. We can trust them to use it wisely, as they will with the >4 bil shares left in the "treasury". Since most Dell employees are shareholders,( or profit from its success) it is important for morale to have a stable and growing stock price. The profit growth is there, stability a bit harder to achieve.Let the P/E fall where it may. Brazil already in production?- Wow Regards Sig

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next