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Technology Stocks : Dell Technologies Inc.

DELL 135.98

+3.0%

3:59 PM EST

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To: Meathead who wrote (161692)	10/5/2000 8:14:21 AM
From: Bill Jackson	Read Replies (1) of 176387

Meathead, Dell has done very well in the past, so well that great expectations have made the SP go to great heights. Now they stumble, not too badly, but the multiple falls enormously. It is all perception in the investor sea. Dell is really fine as a company, but the aura of invincibility has shattered. In addition there are more people coming on line with the direct model. People who will have no retail distribution baggage or who will abandon what retail intermediaries they did have. Dells success was in large part due to the big three staying loyal to their coterie of retailers and Vars. Dell just ate them for lunch. Now the market is accepting total disintermediation and margins will get smaller. dell had good margins while the others left too much on the table for their partners. Not any more, it will be lean for Dell too. Dell just will not be able to get a high multiple again. As for AMD, they have always made good quality parts. Now they have the lead in good quality parts and it looks like they will keep it for a few years. AMD has parts under development as well so Intel will not find it so easy to lead again. Bill

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