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 133.20

+5.7%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: D. Swiss who wrote (147365)	11/13/1999 2:10:00 PM
From: Chuzzlewit	Read Replies (2) of 176387

Drew, It is a cash cow that is not getting the respect it deserves. Exactly! And that is the point that many analysts miss, because they insist on focusing their attention on earnings. The real story is that Dell is capable of expanding at 40%+ per year utilizing only operating cash flow to fund growth. That is a direct result of two factors: a very low CCC and a very high ROIC. I have yet to see another company with that combination. Maybe the market will catch on next week. Maybe it will take a year. It doesn't matter to me long as these fundamentals remain intact. The only short-term negative I see is how the industry as a whole responds to increasing component costs. If a price war erupts it will be won by the company with the best operating model and/or deepest pockets. Clearly, Dell has the best operating model in the business, and can make money where no other competitor can. I question the probability of a price war because IBM and CPQ are already under tremendous pressure, and I doubt that shareholders would be happy with a period of sustained losses. TTFN, CTC

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next