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Technology Stocks : Dell Technologies Inc.

DELL 119.68

-0.6%

3:59 PM EST

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To: t2 who wrote (165156)	5/7/2001 8:39:40 PM
From: kemble s. matter	Read Replies (2) of 176387

Hi!! RE: So many were expecting the margins to deteriorate. In Dell's planning they allowed for a certain amount of drop in margins but now we realize that they actually could have cut prices even more to hit their targetted margins..but did not need to. Extending that further: If Dell could meet targets without more price cutting, that also means they can do it for the next quarter. That is the way I would interpret that. They are succeeding with less cuts than they needed to hit targets this quarter and I would bet they are already on track for the next quarter for margins. Remember, the stock is trading down on future expectations of weakening margins. This suggests that they margins won't get much weaker, if Dell does not want it to. They call the shots in the PC sector, no doubt about it. Michael sent a Jan. 2000 message to all employees...In this he mentioned the further continuation of squeezing the competition beyond where they have been...He also described how the frictionless/paperless work of the DELL model and further cost cuttings within the corporation would only add to increasing the pain of the competition...I'm sure that this economic environment is nothing they anticipated but I can assure you the plan was in action long before AGreenspan's envy took hold of this market...DELL is set on this land grab and has been for sometime...It is not something that they just decided to do since the PC market shrank over night...Of course one could debate that this economic environment only enhances DELL's spotlight for proceeding...Any number have long ago proclaimed that it's all over for the others...I'm continually amazed that others don't see the other 75% of PC sales in the USA that are still out there for DELL's grabbing...Who can compete with their efficiency? "Imagine where DELL will be in five years while the others try to catch up?" Mike Kwatinetz June 1998 :o) Best, Kemble

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