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 133.18

0.0%

Nov 28 12:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: jmac who wrote (161280)	9/29/2000 10:56:38 AM
From: Bob Kim	of 176387

jmac, Here are some excerpts from ML today about AAPL: "We believe there is a high likelihood that investors will overreact to this news and take down the PC names in sympathy. We would particularly view this as a buying opportunity for Gateway (GTW; $54; C-2-2-9), and to a lesser extent, Compaq (CPQ; $28.25; B-2-2-7 and Dell. (DELL; $33.44; B-1-1-9)." [emphasis added] This doesn't sound like a ringing endorsement. "While we had been maintaining our Accumulate rating on Apple shares due to an easy compare in the September quarter for PowerMac, we have been very cautious over the past couple of months due to our belief that the company would experience marked slowdown in sales growth beginning in the December quarter." [emphasis added] During this cautious period (say 6/30 to 9/29) he raised his price target on AAPL from $52.50 to $70 and lowered his price target on Dell from $70 to $54. BTW, I also have a profile for AAPL on my site. Here are some interesting comments from ML's retail analyst in defense of the electronics retailers in light of the AAPL warning: "Apple provides no price protection during model change over. So retailers stop ordering very early in each cycle. Other PC vendors do provide some price protection in order to maximize sell-through." "Apple gives almost no advance warning on new products so retailers often wait to order. HP and Compaq operate in exact opposite way with PC stores so that early ordering and advertising plans can be established." "Main retail channel for Apple has been CompUSA. On our last conference call, we estimated –25% comps at that chain as they were deliberately walking away from business." "PC demand has been shifting from desktops to laptops with Compaq and Toshiba having higher market shares. Laptops are where most of the incremental sales growth is coming at PC retail stores today."

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next