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Technology Stocks : Dell Technologies Inc.
DELL 127.92+0.4%Dec 30 3:59 PM EST

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To: rudedog who wrote (151247)1/13/2000 12:50:00 PM
From: JRI  Read Replies (2) of 176387
 
Rude, If MD and Waitt could get along.....what do think of a merger??

* Gateway could be Dell's low/middle end consumer brand....Dell would be the high-end consumer, corporate brand...making clear dilineation in the consumer's mind (which is, currently, not the case)

* Perfect up-sell (consumer) sales cycle...Gateway to Dell...life-long customer...

* Dell could benefit from/expand AOL Time Warner relationship (of Gateway's)

* Defensive...eliminates one possible direct competitor...who, one day, may eat into corporate biz...certainly a barrier to expanded consumer sales....

* "Out-of-box" ops..Gateway has shown more cunning, quicker-to-the-mark..in understanding this ops..this trend...possibly...one big growth op is leveraging current (consumer) customer relationship to sell a lot of other stuff...financing, too...

* Increased leverage in supplier relationships....due to bigger purchases...more cost savings...

* Potential cost savings due to administrative personnel cuts (higher sales per employee, combined Dell/Gateway, then as separate entities)....

Although I'd like to see Dell consider "bets" in handhelds, storage, and other e-commerce....If Dell would do a bigger purchase, GTW would seem on the screen (again, probably fantasy, but assuming Waitt and Dell would get along)....
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