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Technology Stocks : Dell Technologies Inc.

DELL 117.79

-1.4%

3:56 PM EST

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To: Tony Viola who wrote (145227)	10/19/1999 9:56:00 PM
From: rudedog	Read Replies (2) of 176387

Tony - saw that on the intel thread and almost responded there. I have exactly the same question... prices have been edging up since July. There was a brief jump on the spot market after the Taiwan quake but it only lasted a few days, and prices are now back to about pre-quake levels. Hard to believe that any kind of long term contract arrangement would have left DELL open to a big spike in DRAM costs. As far as the argument that "everyone will have the same problem", that doesn't play either. IBM, of course, has their own price protection plan, called technology infrastructure. HP and CPQ did equity investments in several DRAM manufacturers years ago, and have product agreements tied to production costs, not market price, so they should have a much better picture than DELL apparently has. DELL's recent agreement with Samsung covers LCD panels, not DRAM. And even the LCD deal will take a long time to bear fruit. All in all an interesting turn of events. You can be sure that others on this thread will paint a different picture... but I am trying to keep my head out of the sand.

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