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Technology Stocks : Dell Technologies Inc.
DELL 119.65-2.5%11:45 AM EST
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To: Tony Viola who wrote (145227)10/19/1999 6:23:00 PM
From: D.J.Smyth   of 176387
 
Tony, you're not asking me, but i'm going to give you an answer to this question anyway.

The fact that Taiwan supplies only 10% of the DRAM market didn't carry much relevance relative to prices worldwide. When the quake hit, the Koreans used the quake as an excuse to squeeze 30% to 40% (overnight increase) more from certain chains. It's called overnight mass collusion. Once Samsung began it's campaign, others joined in by raising prices as well. Dell, I think, as a result, signed a multi-year agreement with Samsung (which turns out to be fortuitous anyway). The Samsung agreement is more positive than negative for Dell - seems Dell's earnings will be more predictable (relative to that variable anyway); so other variables can be concentrated on more fully. Dell should have signed a Samsung agreement before the quake in order to avoid this vary problem. Live and learn.

I figured Dell's other areas would pick up the slack of $.01 to $.02 in earnings. And; you still never know. Dell's pronoucement last night stated they were not able to objectively quantify exact earnings from other positive areas - which leaves it up in the air to the positive side (just as Apple did). So, Dell stated it was probable on one end; but on the other ends not possibly scientifically set in stone.
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