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Technology Stocks : Dell Technologies Inc.
DELL 125.07+2.1%2:38 PM EST
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To: Sig who wrote (141621)9/9/1999 5:03:00 AM
From: Sig  Read Replies (2) of 176387
 
This acquisition stuff a bit much to ponder.
We know Dell:
1.Hires/procures the best executives they can find with stock options as a major incentive. Then gives each division as much freedom as possible to achieve 'on their own'
2. Makes best use of capital with increasing returns each year.
3. Stated they saw 4 areas where $10 bil (40 bil total)in increased sales could be achieved in a few years.
4. That one study stated that only 5% of the servers/storage ( I added the storage) needed for the industry upcoming years is now in place.
5. That Dell has an $18 bil agreement with IBM for components.
Conclusions:
This appears to be one of the $10 bil potential areas of growth.
And without considering other areas, could alone mean perhaps a 25% growth rate in overall sales for the company.
60 days to complete the merger means that November earnings will be unaffected and will allow time for analysts to be directed
to expect the 5 to 7 cent charge in a following quarter.
With Dells growth rate ( 100% in some areas) the present P/E
should be only a minor concern.
The mathematics is elusive- best to place our faith in
the "better mousetrap" theory, where if one builds a better
business model the whole world is attracted to it.
Go Dell
Sig

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