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Technology Stocks : Dell Technologies Inc.
DELL 129.24+0.7%Dec 26 9:30 AM EST

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To: Hugh W. who wrote (9144)6/27/1997 5:29:00 PM
From: John Stockman   of 176387
 
Hugh,

I can't tell you what the profit percentage is for each line, but my
estimate is that (after all expenses are included), that
Dell pulls home about 20% profit on average for everything
they sell.

But since all of the P.C. components and peripherals are falling
so fast in price, the profit margins get squeezed as time
goes by. Plus, the Pentium 2 line of processors are not selling
as well as Intel had hoped, so all P.C. companies such as Dell
have to lower their prices to drum up more business.

You are right that Dell charges too much for Ram memory and
other peripherals, so don't be too suprised when the company
doesn't make the profits that Wall Street was expecting.

In my opinion, I would suggest selling the stock now, take the
profits and invest again later when the stock gets below 100,
or 50 when it splits.
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