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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST
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To: jim kelley who wrote (153168)2/7/2000 10:22:00 PM
From: Meathead  Read Replies (1) of 176387
 
Hi Jim.

Re: It is clear that DELL is investing heavily in businesses outside of DELL. ..... At the same time their core business is growing faster than any other business its size (25B) has ever grown. This is a dilution of attention.


You've hit on another key point and one that seems to have
gotten a lot of people's attention. I remember Q4 last year when it was stated that they took their 'eye off the ball' alluding to the fact that it would not happen again. Now, after 4 one time events and a major recalibration of expectations, one has to wonder if Dell has finally matured and will be valued as a mature stock ala HWP, IBM, INTC etc.

Clearly, there is a lot to talk about 'outside of the box' and new perceptions could definitely be spun. However, the near term earning potential of all these new initiatives still pale in comparison to the gargantuous revenue generated by HW sales. Drawing attention to them could have unpredictable results.

As to the timing of the warning... I too thought it was 2 weeks too late considering how Dell's business model operates and the fact that they generally know where they
are according to plan at any given time. But, I believe the timing was not out of line with other warnings from GTW and IBM who actually announced after the Q ended.

MEATHEAD
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