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Technology Stocks : Dell Technologies Inc.

DELL 126.42

+2.8%

Dec 19 9:30 AM EST

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To: Calvin who wrote (148192)	12/1/1999 9:00:00 AM
From: Sig	Read Replies (1) of 176387

Re: Webpc I prefer to look at it this way. Dell does not yet have the people and facilities to keep up with demand. Contracting with SGI provides(the assumed) 100k units for added sales of 150MM and profits of 30mm without adding great numbers of Dell employees. It frees Dell to use their own people to continue expanding production of servers and data storage units with higher margins. Adding sales and earnings in this way is a better option than to do than nothing and still (possibly) watch margins decline. I was hoping the Webpc would make both toast AND coffee, a red one would look great in the kitchen. Now I find it does neither so am not so interested. Sig

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